The Waikouaiti Golf Club and an equestrian trust are at odds over the use of Dunedin City Council-controlled land, with both groups saying they want to develop it for recreation.
At issue is an 18ha block used by the golf club for grazing which the Highcliff Trust wants to develop into a top-class equestrian eventing course.
The horse trust says the land is not being used for its designated recreational purpose; the golf club says it will develop it into a nine-hole extension to the course.
A grazing licence can be revoked if the land is required for recreation.
After months of negotiation, the matter appears likely to be decided by the Dunedin City Council following a recommendation next month by the Waikouaiti Community Board.
Highcliff Trust chairman Gary Cole said he had rejected the offer of another block on the reserve because it was unsuitable.
The trust would not "spend a cent" on the block as it had no large flat areas to allow for showjumping, dressage, or parking, and was too steep for a cross-country course.
The trust, which has $100,000 to develop the course, was "pencilled in" to host the Springston Trophy in 2012, a South Island-wide competition for young riders, which was the biggest pony club event in the southern hemisphere.
The trust was willing to enter an arrangement to allow the golf club to continue grazing the land, under certain conditions.
He asserted the golf course's development plan came once it realised the strength of the horse trust's case.
Waikouaiti Golf Club president Richard Russell strongly rejected the assertion the golf club came up with its own development plan to stymie the horse trust.
Developing the course to 18 holes was always part of the club's long-term plan, he said.
Waikouaiti Community Board chairman Alasdair Morrison declined to comment, saying he was in talks with the parties to find a solution.
A city council report last September says the horse trust's proposal is a good use of undeveloped reserve land.
Contacted last week, council reserves policy and planning officer Donila Lee emphasised the report was several months old, and did not factor in the golf club's plan to develop the land.
