The council's strategy committee decided to withdraw a variation to its district plan establishing the Oamaru Harbourside plan because, through the land it owns, it has control over the area and its development.
Cr Helen Stead wanted more public input into future development, but failed to achieve that at a council meeting this week.
The variation, a formal process under the Resource Management Act, was aimed at revitalising the harbour area by ensuring activities and development were managed to retain its heritage, nature conservation and amenity values, keeping the harbour as a working port, and maintaining public access.
However, the committee decided the variation, a process which had already taken two years and was likely to cost ratepayers another $80,000 or more, was not now needed.
The council now controls most of the land in the area, which means it decides how it will be used, and has a Harbourside plan which outlines how development should take place.
On Tuesday, the council received information from its strategy committee about the decision to withdraw the variation.
Cr Stead attempted several times to discuss the withdrawal, something she has consistently opposed.
However, she was overruled by points of order raised by other councillors because the council was just discussing receiving the information, not debating the decision to withdraw the variation.
Cr Stead said the public had a right to be involved and have an input into any proposed development in the harbour area.
They had been offered that through the variation, but that had now been taken away.
The council might own all the land and have responsibility for all developments at the harbour, but people had concerns about the future, she said.
"We [the council] can do what we like, but that is not appropriate because it is a public space and the public should have an input," she said.
She questioned why councillors did not have the right to discuss the decision to withdraw the variation, but was over-ruled by Waitaki Mayor Alex Familton, who said the matter had already been resolved and Cr Stead was not speaking to the motion, which was to receive the information.
Cr Stead then moved that any development at the harbour go through a publicly notified resource consent process so the public could make submissions.
While the motion was seconded, Cr Stead was the only one to vote for it.
