Local Government Minister Peseta Sam Lotu-Iiga has staked his job on consultation taking place before any changes that would require councils to amalgamate.
Mr Lotu-Iiga said if there were "forced changes without consultation'' he would resign as minister.
His speech, on the final day of the Local Government New Zealand (LGNZ) conference in Dunedin, came after the Government's plans to get councils to amalgamate to reduce rates came under fire.
Prime Minister John Key on Sunday defended the Government's proposed Local Government Amendment Act at the start of the conference, saying rates were going up, not down.
Council responsibilities such as infrastructure would be cheaper if they were shared.
The legislation was criticised by LGNZ president Lawrence Yule, who said there was concern among councils the legislation could lead to local authority amalgamation by stealth, and local government losing legal powers.
Mr Yule said the legislation would also allow the Local Government Commission to determine where council-controlled companies (CCO) would be established and operate.
In Dunedin, CCOs include Delta and City Forests.
Mr Lotu-Iiga said yesterday, on the last day of the conference, he understood the concern councils had.
The Government did not intend to force changes.
He said councils were already working together using shared service models on matters such as roading, sewerage and consents.
There were barriers preventing "full council-owned companies across multiple councils'', and the reforms removed those barriers.
Mr Lotu-Iiga said there had been "huge strides'' in Auckland with combined CCOs.
Mr Yule said yesterday Mr Lotu-Iiga's promise to resign as minister if consultation did not take place was "comforting to an extent''.
But the legislation was more powerful than what a minister would or would not do.
"While we're grateful for that commitment, it's the legislation we still have an issue with.''
The problem was with the Local Government Commission being able to "impose CCOs on a community without a poll''.
"The community don't actually get a democratic say on that, in terms of a vote.''
Despite the issue, Mr Yule said the conference, which attracted more than 560 delegates to Dunedin for the three-day event, including mayors, chief executives councillors and others, was a positive one.
"Most people told me it's been a fantastic conference.''
