The process of moving the Frankton Playcentre a few hundred metres could be a "huge pain" for the Queenstown Lakes District Council.
The Ministry of Education has told the council it wants to demolish the existing building and build a new centre above the planned Remarkables Primary School.
At the council's community services meeting yesterday, Mayor Clive Geddes discussed moving the centre from a section of council-owned reserve land below the school site to a section above it.
The playcentre was told of the decision to demolish the centre at a meeting with the ministry on Monday.
Playcentre parent Jo Hey said they were happy the new centre was going to be built but they would need a new place to operate from for a year.
"We would like to ask people out there if they have anything we can use," she said.
Ministry Otago and Southland manager Kathryn Palmer said there were a number of site options being investigated.
"The ministry is committed to ensuring children and families have access to quality early childhood education," she said.
"This assurance was given at a meeting with the Frankton Playcentre on Monday."
However, Mr Geddes said the council reserve land involved would have to be redesignated.
Queenstown Lakes District Council community services general manager Paul Wilson said the process would involve changing the designation of the rural general land from recreation to "local purpose pre-school" and be publicly notified.
It would then go to a resource consent hearing, he said.
Mr Geddes was blunt in his opinion of the shift.
"Personally, I think this is a huge pain," he said.
He noted there could be an issue with rebuilding the playcentre within the Ministry of Education's allowed budget.
"It will be an immense challenge for them in Queenstown," he said.
Remarkables Primary School establishment board chairman Roy Thompson said that while the rebuilt pre-school had a different funding source, it would be a part of the school.