A "light-touch proposal document" presenting regional priorities for dealing with growth has to be ready by the end of this month.
A meeting was held last week in Alexandra for elected representatives of the Queenstown Lakes and Central Otago district councils and the Otago Regional Council.
Central Otago District Mayor Tamah Alley said councillors were pleased to get into the same room as fellow elected members from the other councils to better understand priorities for individual communities and the wider region.
"South Islanders love to do business face to face," she said.
"This process will no doubt include understanding different viewpoints, taking a wider lens than we previously have, and some compromise.
"Our council will weigh up the document, priorities and opportunities on the basis of the best interests for all our people, now and into the future."
Matters of interest included water, roading and infrastructure resilience, the movement of people around the region and improved provision of energy, she said.
Queenstown Lakes District Mayor Glyn Lewers said it was good for elected members of the three councils to get around the table.
"We should do it more often," he said.
"I think it gave a better appreciation and a chance to walk in each other’s shoes."
Mr Lewers felt there was a genuine mood to keep as many options open as possible, "if we are lucky to be selected to enter negotiations with the government".
"Now it’s up to each individual council to decide on how to progress, which will happen in the final week of February."
Otago Regional Council chairwoman Gretchen Robertson said the meeting was a valuable step forward.
"This was the first time councillors from all three councils have come together specifically to discuss important local issues through each other’s eyes," Cr Robertson said.
"Taking a 30-year horizon view is critical when considering the challenges and opportunities ahead."
For the regional council, public transport was a key focus.
"Inland Otago is home to areas of New Zealand’s most rapid growth, with significant tourism demand, requiring not just long-term strategic planning but nimbleness and ingenuity," Cr Robertson said.
"Resilience is another major consideration, including water availability and energy security."
The Department of Internal Affairs said a high proportion of councils registered to submit a city or regional deal proposal.
"We are continuing to work with the remaining few and will still be accepting registrations and amendments to registrations until late February," Internal Affairs local government policy general manager Richard Ward said.
