The suggestion of a Dunedin unitary authority, which would merge the functions of a city and regional council, had problems that would need to be worked through, Clutha District Mayor Bryan Cadogan said.
"The assets of the regional council belong to the region," Mr Cadogan said.
This included the port operation within Dunedin and Port Chalmers.
Mr Cadogan said Port Otago was a regional entity and produce from the region was put through it.
His comments came after the Dunedin City Council decided consideration should be given to establishing a unitary authority for Otago.
A council spokesman said last week the resolution adopted by the council was focused on finding the right mechanism for councils across Otago to begin talks.
"Those discussions will include what options should be considered, but we’re not at that stage yet," the city council spokesman said.
Mr Cadogan said city council representatives had not raised the matter with him.
"If they want the discussion, please have it with the mayors of the region."
Any pursuit of the matter would involve significant talks, Mr Cadogan said.
He would be open to discussions, but suspected they would be a distraction when councils faced pressing issues, such as affordability of investing in Three Waters infrastructure.
The argument for a Dunedin unitary authority has come principally from Dunedin city councillor Lee Vandervis.
The city council decided in 2017 to look into the pros and cons of a unitary authority in the Dunedin area, but chief executive at the time Sue Bidrose failed to put the resolution into effect and it was rescinded in 2019.
Cr Kevin Gilbert has led the latest drive to have a unitary authority considered in Otago.
Triggering conversation was the point of the resolution, he said.
"I look forward to those discussions taking place and seeing where things end up."
Southland councils are also considering reform ideas.
