A proposal to make Arrowtown's speed limit 40kmh was presented to the Queenstown Lakes District Council in November after it had been approved by the council's infrastructure services committee.
However, the proposal did not follow the correct bylaw amendment process as a statement of proposal was not included.
QLDC transport manager Denis Mander said the proposal did not mention why a 40kmh speed limit was being suggested, which would have been "to improve pedestrian safety".
A bylaw proposal reference, in this case the "calculated speed limit", was also excluded from the proposal.
The process will begin again, starting with a new proposal to be put in front of the council within a "couple of months".
"We intend to put forward a correct proposal to go out to consultation again."
Mr Mander said the council had received 34 submissions to the proposal, 20 in direct relation to the Arrowtown speed limit.
"They will have to resubmit.
"While it's a technicality, it is the correct process that the bylaw proposal be amended and a revised proposal presented to council for them to consider."
The council will contact submitters to advise them of the changes.
Mr Mander said the "mishap" was an oversight and any omissions from the proposal were accidental.
He hoped any ratepayer who missed out on the original process would be better informed this time around.
