The council has received 19 submissions to its proposed district plan change 7 entitled: Managing Fault Rupture Risk in Westland.
While the fault, measuring hundreds of kilometres, runs mostly through farmland, it passes through the heart of the picturesque Franz Josef tourist town.
The plan change would create a ''fault avoidance zone'' in the town where no new buildings could be constructed and the use of land would be restricted to gardens and car parks.
Glacier Motors Ltd is one of the businesses directly affected and, in his submission, director Neil Matchett opposed the plan change. He noted the council had known about the fault line but still approved buildings on or near it.
Mr Matchett considered the council needed to liaise more, the Government should be involved and businesses forced to move should get compensation.
Scientist Robert Glennie supported the plan change, describing it as a harsh but necessary ''reality check''.
''The township of Franz Josef ... is not sustainable in its present location in the longer term.''
Mr Glennie believed the plan change should also take account of flooding hazards likely to result from a major earthquake on the Alpine Fault.
''The consequences of not acting decisively when the Westland District Council had the chance would look negligent in the extreme in the post-Christchurch earthquake era we now find ourselves in.''
Helen Jones said she owned one of 36 buildings affected by the plan change and said the zone would close down Franz Josef ''with very little regard'' for residents.
''I don't think that we have been given enough information regarding our options (if we have any) once this plan has been put in place.''
Ms Jones said she and her partner could not afford to walk away from their house.
Property owners Rob and Jan Nicholl said they had bought a property despite knowing about the fault line and had accepted the risk.
''We do not need your cotton-wool rules based on inexact science or 20% probabilities.''
They said the council had ''rendered our block of land worthless''.
''Can't clear it, can't put a holiday home on it, can't sell it.''
Lawyer for Scenic Circle Hotels Ltd Simon Johnston said the plan change went ''too far''.
''The Christchurch earthquakes have shown that certain types of buildings and building materials can withstand even large earthquakes with little or moderate damage.''
Mr Johnston said new development in the zone should be permitted provided it used modern materials and techniques designed to withstand earthquakes.
A date for the hearing has not yet been set.
