In February, the council approved the disposal of four parcels of land at Awarua Bay Rd, about 20 minutes south of the city.
It sought revocation of reserve status from the Minister for two of the parcels, but later discovered it was required for all four.
That led to another paper being presented to the council on Tuesday, which was approved without debate.
Disposal of the land in question has previously undergone public consultation and one of the submissions came from Te Rūnanga o Awarua.
The rūnanga did not object, but felt it was a good opportunity for the council to offer one or two blocks to support a wāhi nohoanga (place to camp to gather kai) or papakāinga housing.
It is understood there has been little communication from the council to the rūnanga about the land before a meeting late last week.
In response to questions, council parks and recreation manager Caroline Rain said her organisation was working closely with Te Ao Mārama, which represents Ngāi Tahu tangata whenua in the region in resource management and local government.
That work was to make sure rūnanga were informed about the revocation process for the remaining two land parcels, she said.
Two sections with revoked reserve status are already up for sale and the outcome of that process is set to be discussed at a full council meeting next week.
The remaining sections will be marketed once reserve status is removed. One is under licence to an adjoining owner.
That resident said he was leasing the section from the council for $1 per year, plus GST.
The man, who did not wish to be named, used the land for gardening and had set up a greenhouse.
Direct contact with the council had not been received for 18 months, he said, but he hoped to buy the land if it was made available at a reasonable price.
Another landowner in Awarua Bay Rd with interest in another lot did not wish to comment.
The council noted there were encroachments between some of the sections on Awarua Bay Rd and neighbouring land.
LDR is local body journalism co-funded by RNZ and NZ On Air