Uncertainty about future revenue from development fees and the "low appetite" for ratepayers to pay an increased share of new infrastructure costs meant councils could reduce their investment in growth-related infrastructure.
"Tauranga City Council has already indicated to developers that a new $20 million road, Te Okuroa Drive, required to open up over 2000 new sections in the new suburb of Wairakei may not proceed."
This was because there was too much risk around future development fee revenue streams to repay the cost of the project, the report said.
If this investment in infrastructure did not go ahead, it would jeopardise the logical and cost-effective development of future growth areas.
The report said infrastructure needed for Wairakei would enable development of the neighbouring growth area of Te Tumu which was planned to be home to 10,000 people.