Conservation Minister Steve Chadwick has refused to intervene in the dispute over a $100,000 bill the Department of Conservation is charging the Central Otago District Council.
The bill is for a pipeline easement under the Otago Central Rail Trail at Alexandra.
Ms Chadwick said she would not intervene as Doc was taking court action over the bill.
Alexandra businessman Russell Ibbotson had written to the minister asking her to look at the issues surrounding the costs.
The document, signed by Mayor Malcolm Macpherson and council chief executive John Cooney, contained a clause that the $100,000 cost would be reviewed by the minister.
The council and Molyneux Estate argue the main is for Alexandra, for new sections and for firefighting, but Doc insists it is to service 100 sections at Molyneux Estate through which it passes.
Doc has charged in accordance with its policy of requiring developers to pay per section for easement rights.
