The Clutha District Council did not award a single cent from its $11,000 biodiversity fund last financial year.
The council's manager of planning and regulatory services David Campbell said a lack of publicity for the fund and the prospect of paperwork may have put off would-be applicants for the ''sporadically'' used fund in the year ended June 30.
The fund was established ''to maintain and enhance a network of viable habitats and ecosystems in the Clutha district by encouraging and supporting landowners who are committed to protecting, enhancing and managing indigenous biodiversity'', the council's 2009 policy states.
The Otago Fish and Game Council made the sole application for funding last year for improved fencing to protect the estuary between the Matau and Koau branches at the mouth of the Clutha River and the council voted the $2500 request down at a regulatory services committee meeting last month.
Environmental officer for the Otago Fish and Game Council Peter Wilson said he was disappointed in the decision but he understood that it was ''entirely the council's call''.
The Fish and Game Council had made the application for $2500 with $2500 secured as a contribution from the Department of Conservation contingent on the district council's approval.
''There won't be any work that goes ahead for the estuary, unfortunately, because there isn't any funding,'' Mr Wilson said.
''We realised it had a whole lot of biodiversity values, fish and game values, trout spawning values, and a nice sea-run estuary - there's nice sea-run estuary trout in there. We'd worked that out and we knew that we then needed to try and get some funding if we could to protect it.''
The area was valued by Kai Tahu, was used by banded dotterel, pied stilt and grey teal, and was significant habitat for inanga spawning.
The area is protected as a coastal marine area and regionally significant wetland. It is fenced on the landward side of the estuary. Two farmers lease and graze on the council-owned land bordering the estuary.
It is fenced, but Mr Wilson wrote in his application, ''These values are threatened by trampling and pugging from inadequate cattle fencing in many places.''
The council voted 6-4 against the application.
Cr John Cochrane said he believed adequate fencing was the ''farmers' obligation''.
''I know there's a fund there. I think there are better uses for those funds,'' he said.
Mr Campbell said the council would consider what happens to the funds as part of its ''carry-forward'' projects.