The Alexandra, Clyde and Districts Business Group launched a petition last week, calling for the council and the Vincent Community Board to "refocus" their efforts on the need for development, growth and the creation of jobs.
Central Otago Mayor Tony Lepper said the petition was a waste of time and energy and the group should devote itself to working with the council on solutions to what the group saw as problems.
Mrs Dean said the council and group should sit down and communicate about the issues which affected them, rather than debating their problems through the media.
The "infighting" would do little to improve Alexandra's economic outlook and the petition was " a sad indictment of a relationship which has clearly broken down", she said.
Business group spokesman Bruce Davidson said the two groups were not at war.
"We want to create an awareness within the council that it has problems and we want them to do something about those problems."
The group wanted to discuss its concerns with the council but also wanted some action to be taken, he said.
The petition was being circulated in Clyde, Roxburgh, Omakau and Ranfurly, as well as in Alexandra.
Mr Lepper said the petition showed a lack of understanding of what the council was doing to promote business.
"As a council we have recognised this and this is one of the reasons why we agreed to the employment of a communications person. Part of their role will be to better articulate what we are doing and get others involved in looking for genuine solutions."
The council had attended some of the group's meetings.
