Waipā District Council says it has been denied an extension to slow the introduction of medium-density housing to its three main towns.
However, Minister of Housing Chris Bishop allowed the council a short extension to August to get to grips with the government's mandatory housing intensification programme.
Waipā mayor Susan O'Regan said Plan Change 26 would pave the way for two houses, up to three storeys high, to be built on sections in Cambridge, Te Awamutu and Kihikihi, without a resource consent or notifying neighbours.
The council wrote to Bishop and Minister for the Environment Penny Simmonds in March, formally requesting an extension to consider its planning response until February next year.
It followed recommendations from an independent hearings panel on submissions made on the proposed new rules, most of which were against the idea.
The panel heard more than 100 submissions when the plan change was first notified in August 2022.
Those opposed were concerned about loss of peace and quiet, privacy, and natural light, infrastructure costs and capability, increased roadside parking and the ruin of the special character of Cambridge in particular.
At the time, O'Regan called the requirement for the plan change a "blunt, heavy-handed instrument" that had caused "huge angst for our community".
"The time extension request seemed appropriate as the government had indicated it was looking to make these mandatory requirements optional," she said.
The council wanted an extension to February next year to consider its planning response to the panel's recommendations.
O'Regan said it was now in the position where it had no option but to follow the directive given by the minister.
"We still maintain that Waipā should not have been lumped in with cities like Auckland and Wellington to start with," she said.
"We are not against dwelling intensification if it is done well in the right location, but being forced to go down this track has the potential to see houses built that could adversely impact how other people use and enjoy their properties.
"We also need to take into account the required infrastructure to support those houses at a cost of in excess of $600 million. We're stuck between a rock and a hard place."
The rules allowing more walk-up townhouses were passed into law in late December 2021 through an amendment to the Resource Management Act (RMA) to combat New Zealand's housing shortage.
In his letter to the council dated 12 June, Bishop - who was also the Minister responsible for RMA reform - said the council was directed by the previous Minister for the Environment to complete its intensification planning process by 31 March this year.
On 20 March, it asked for the extension.
Bishop said in his letter he had considered the council's request but until the government made decisions on the Going for Housing Growth policy the current legislation still stood and must be complied with.
"The council did not provide sufficient reasons to justify granting a significant extension of time to complete the intensification streamlined planning process and nor would granting the requested extension provide for an expeditious planning process.
"I therefore have no reasonable basis for granting the requested extension of 11 months."
He acknowledged the council's view.
"I have heard and do share your concerns regarding medium density residential standards, including their one-size-fits all nature, and I am progressing work on Going for Housing Growth at pace."
Bishop said because the panel's recommendations allowed little time for the council to consider them, he would extend that process to 30 August.
The council would consider the recommendations from the independent hearings panel at a public workshop in early August before making its final decisions.