The Department of Conservation wants to end its responsibility for the road to the Moeraki lighthouse, described as "unsafe and hazardous" in places despite its popularity with tourists.
But the Waitaki District Council is not quite ready to take charge of the road, even though the Waihemo Community Board has recommended it do so.
The council fears it may set a precedent for taking responsibility for other roads in the district that are the responsibility of Doc, such as the one into Birchwood station (now the Ahuriri Conservation Park) near Omarama.
The council has handed the issue to its assets committee to consider.
The Waihemo board recommended the road be vested as a legal-road reserve with the council, in which case Doc would pay $30,000 to upgrade it.
Council roads assets manager Gary Woock said the general condition of the road was acceptable, but as a high-profile tourist route it was hazardous and unsafe in certain steep and narrow areas.
The road, from Moeraki to the lighthouse, is unsealed.
Doc controls the final 1.7km as a government purpose reserve.
"The condition of the Doc road has been very poor in the past and vehicles have driven on the side of the road to negotiate potholes and rutting," he said.
About seven years ago, a report considered upgrading the road and estimated the cost at $77,000. In the past five years, Doc had spent about $35,000 on maintenance.
If the council took over the road, Doc's $30,000 contribution would be spent immediately on maintenance and minor improvements.
Doc would cover the legal cost of handing over the road.
As the road was a popular tourist route, regional funding could be available for sealing it, Mr Woock said.