A plan to relocate part of the picturesque Franz Josef township away from the Alpine Fault could create a wasteland in the tourist town, residents say.
Franz Josef development society chairman Marcel Fekkes says there are 32 commercial and residential buildings in the zone under consideration for relocation by Westland District Council.
"It will become a bit of a wasteland. It's not good for the growth of Franz, that's for sure," Mr Fekkes said.
Relocating part of the Franz Josef township to more stable ground will be on the agenda at a meeting of property owners in the town next week.
The town lies across the Alpine Fault and the council's proposed district plan change 7 establishes "fault rupture avoidance zones" along the faultline.