Queenstown's proposed wastewater treatment plant, Project Shotover, is likely to get a hearing in the Environment Court next year as mediation talks seem to be failing.
The Queenstown Lakes District Council and project appellants have been in talks since July.
The council's strategic project manager, Martin O'Malley, said the council was preparing evidence for a court hearing likely to take place in May or June.
"Mediation has come to a point where we're not making any progress. We need to get on with procurement and need consent. The best way to do that is through the Environment Court, unfortunately," he said.
The Environment Court had given the council until February to prepare its evidence.
At a council meeting last week, Mayor Clive Geddes urged Mr O'Malley to ask the court to deal with the appeal as a matter of urgency.
Mr O'Malley said he had already told the court the existing sewage pond system would reach capacity in 2012.
The council had planned to commission the plant in 2012 but had pushed it out to the 2013-2014 financial year.
The council was granted 10 resource consents by the Otago Regional Council in March to build the plant on the Shotover delta.
An opposing submitter lodged an appeal to the Environment Court on the grounds of insufficient detail on odour mitigation.
Of the 11 submissions, seven were opposed, one neutral and three in support.
The council entered into mediation talks in Christchurch on July 17 and a pre-hearing was set down for July 31 in Queenstown, Mr O'Malley said.
The council was also appealing the consents to the ORC to get clarification on its start dates and to correct wording errors.
Councillors will attend a workshop in early February to decide on the preferred procurement option for Project Shotover.
