The High Court is being asked to overturn decisions made by Kaipara Council, in what ratepayers say is an effort to keep the region alive.
Mangawhai's ratepayers association has instructed lawyers to take action against the Council.
They want the Court to stop the Council making decisions which raise revenue, hoping to push it into bankruptcy.
Commissioners are currently running Kaipara's affairs and have proposed 200 per cent rates increases to get on top of previous overspending.
Ratepayers chairman Bruce Rogan says if the Council was like any other business it would have gone under long ago.
"And if it wasn't for the Local Government Rating Act which empowers councils to forcibly remove money from their ratepayers this council would be bankrupt."