The regional council is taking what it has called a "pre-emptive strike" and it is thought the regional council's report would likely propose a single "super city" unitary authority for the whole Bay of Plenty, including Rotorua.
Tauranga MP Simon Bridges has spoken out in support of a possible amalgamation of the Tauranga City Council and Western Bay of Plenty District Council, and Tauranga City Council Mayor Stuart Crosby has spoken positively about possible amalgamation but said he was concerned about negative consequences if the process was not managed properly.
Meanwhile, Rotorua Mayor Steve Chadwick has spoken out about the regional council's plan saying a Bay of Plenty "super city" council could be crippling financially for Rotorua and may stifle the voice of local communities.
"The evidence is growing rapidly that in Auckland the super city just isn't working, with local services set to be cut because of a crippling $7 billion debt and average rates that are now 30 per cent higher than Rotorua."
Mrs Chadwick said while local government reform was not a bad thing, what really counted was the nature of that reform and whether it was best for the district. She said collaboration with other councils was good for things such as water and transport.
In December the region's leaders met in Rotorua, where the future direction and form of local government was discussed.
An agreement was reached at the meeting for councils to work together on a research project, with the assistance of independent advice, to understand the opportunities that exist in areas such as improved services, cost efficiencies and economic growth.
Work on the project was expected to start in the new year and was expected to be complete by October 2014. It's now clear the region's leaders are not interested in working together as part of a unitary authority.
But having lived in both Rotorua and Tauranga I can see where both sides are coming from.
With so much debt across the councils it could make sense financially to have them all working together.
But the needs of each city are quite different, and the smaller communities could be left by the wayside while the bigger centres get all the funding and attention.