Tarras has no public toilets at present, which has led to visitors jumping over the fence of Tarras School and relieving themselves on the grounds.
Three Tarras School pupils sent a letter to Central Otago Mayor Tony Lepper on Thursday asking for public toilets to be installed in the town.
Mr Lepper said he agreed it was ''totally unacceptable'' for people to be using the school grounds as a toilet.
''I want the kids to know we see it as a priority to work with the community for a good outcome.''
Historically, toilets outside Tarras' Country Cafe were available for both patrons and the wider public during business hours and the council contributed between $3000 and $5000 annually towards cleaning and servicing the toilets.
They began to fail three years ago and the council began working with the Country Cafe to install a waste system so the toilets could cope with demand.
The council set aside $115,000 to meet half the estimated $230,000 cost.
However, the project was halted because the sewerage system would need to pass through a neighbouring property, but cafe owner Christina Perriam recently bought the neighbouring land.
The interim cost of dealing with the waste was $70,000-$80,000 a year, of which the council initially paid half but stopped in June.
Country Cafe enforced a ''patrons only'' policy earlier this month, but the toilets still could not meet demand.
Mrs Perriam said developers looked at the project and determined the cost to be $250,000 so she believed the council should raise its contribution.
''I'm over it. The cost has been so stressful. Unless the council meets me half way I'm tempted to just say it's not my problem to cater for public toilets.
''I am only one landlord in the village who just happens to have toilets on her land.''
Council property and facilities manager Mike Kerr said it was possible the council would increase its contribution if a higher cost was determined.
''The $230,000 cost was based on an estimate from two years ago which was really just our best guess.''
