The council has shelved plans for a women's night shelter in Tauranga.
The shelter idea has been put aside in favour of a "more substantial" project to combat homelessness, the council says.
The success of the men-only Tauranga Moana Nightshelter, combined with reports of women and children living in cars, inspired calls for a women's night shelter last year.
The council made the shelter a priority for future funding applications to TECT in a meeting in June.
Councillors talked about applying for funding to conduct a feasibility study into the potential shelter.
Council community development manager Meagan Holmes said the feasibility study had not been started.
"While the concept of a shelter has a lot of merit, shelters are designed for short-term emergency use.
"Instead, focus has been directed to a much wider, longer-term solution to homelessness in Tauranga."
Tauranga Women's Refuge manager Angie Warren-Clark said there was still a need for a safe environment for homeless women and children in Tauranga.
"We still get calls, I took one yesterday. We get them to our crisis line, our admin line, our office line, into our Upcycle op-shop - that's how desperate they are."
It was a difficult time of year, with cold weather and winter illnesses setting in and cheap housing scarce as the Bay of Plenty hosted thousands of kiwifruit pickers.
"They take up some of the least expensive accommodation options," Ms Warren-Clark, a 2017 Labour party candidate for the Bay of Plenty, said.