That follows a decision by the Mackenzie District Council not to foot its share of the cost of establishing a joint company to manage and promote the 312km trail from Mt Cook to Oamaru, despite part of it running through its district.
The Mackenzie council set aside $125,000 for maintaining the track over three years, but not the $300,000 required to establish the company. It said it did not want to place an increased financial burden on its ratepayers.
The Mackenzie council is also not funding the Mackenzie Tourism and Development Trust, which was managing the trail's development, including the $2.75 million Government grant.
Last year, both councils advertised their intent to set up the company, A2O Ltd.
The Waitaki council has provided $425,000 in funding over three years towards the establishment of a company and initial maintenance of the track. The council saw it as one of the major projects to benefit the community in its 10-year long-term plan.
Waitaki chief executive Michael Ross said there would be ramifications from the Mackenzie council's decision, including the Waitaki Development Board having to take over project management and accounting for Alps 2 Ocean.
He was unsure where that would leave the Waitaki council in terms of funding and promoting the trail.
The company, which was to take over management, bookings and promotion of the trail, was to be jointly owned by the Waitaki and Mackenzie councils.
Mr Ross said talks were being held with the Mackenzie council and a report would go to the Waitaki council's committee of the whole meeting on July 24.
A member of the Alps 2 Ocean joint committee, Waitaki councillor Craig Dawson, was "very disappointed" with the Mackenzie council's decision and predicted it could place an "unnecessary burden" on the Waitaki council.
Construction of the trail continues, around the south shore of Lake Ohau, and from Lake Ohau lodge to Omarama.
