French Polynesia's ruling Tapura Huiraatira Party says there will be no floating islands built in Tahiti's Atimaono lagoon.
The president Edouard Fritch addressed a public meeting in the township of Mataiea after growing concern about the possible impact of the project by the US-based Seasteading Institute.
He said the local community's development would happen with consultation and in harmony.
In the territorial assembly last week, the former mayor and opposition politician Valentina Cross interrupted proceedings by putting up posters to express her opposition to the project.
The mayor Tearii Alpha, who is also a government minister, accused her of spreading fear.
Two weeks ago, Ms Cross accused Mr Alpha of failing to consult the local people about the project.
The Atimaono lagoon has been identified as one of the possible sites for the artificial islands, but the government said nothing has been signed.