Tiny homes developer Ian McComb has called for increased backing from the Government as a "silver bullet" for the national housing crisis.
McComb is aiming to build a community of smaller properties in Featherston.
Homes in the South Wairarapa district, and the area as a whole, have risen sharply in recent times.
McComb, a former Tasman District Council planner, began his consent process for his property, near State Highway 2 on the town's northeastern fringe, two years ago.
An initial application for 120 homes has been cut, and council papers say he is "now pursuing a more standard density".
McComb said he thinks red tape is tying council's hands.
He said current legislation "just does not work" and "it is not facilitating improved housing conditions, or even infrastructure maintenance".
"Housing needs have changed, and our system needs to change too," he said.
"The Government will argue that they are doing it.
"But the recent National Policy Statement on Urban Development continues the 'push' [telling rather than helping] approach from central government which I don't believe will ever solve the problem."
He says councils need "money and the incentive to act".
"In a nutshell, I believe that councils do not have the money to adequately plan growth, fund infrastructure to support growth, employ [and retain] enough staff to process consents efficiently, or deal with any unanticipated side effects of growth."
These include unexpected congestion and demand on parks and other council facilities, he said.
He said he did not blame local authorities for the problem.
"The thing is, this is not their fault as they are operating under the rules, laws and funding mechanisms set by central government.
"Even when a local council is doing its best to support the development of housing, under the current system they simply do not have the resources available to do the job well or in a timely manner. "
He said the funding relationship between central and local government is a "major part" of the issue.
"It's not going to be solved by simply replacing the RMA either [which will result in years of inaction as councils adjust to the change], or other changes that seek to push councils to take action.
"The silver bullet solution needs to include a loosening of Wellington's purse strings in a way that incentivises councils to take action."
McComb's latest attempt to name the road into the development goes before Featherston's community board tonight [Tuesday December 15].
He will seek approvals for the name "Community Green" for the proposed byway.
The council had previously knocked back his suggestion of Hapori Common.
The board will also hear from another developer, Grant Crosland, on his plans for housing in the town centre.
Crosland wants to name a new road Galaxy Way. The development off Revans St will home a six-lot residential subdivision.
In neighbouring Greytown, roads on a new development there still lack a moniker despite hours of meeting time on the topic.
Last week, the town's community board turned down an application for a street name after homeowners objected to their selections.
The developers behind Greytown's Moiki Rd saw their suggestions were turned down.
It was the third successive meeting where the topic had been raised.
Resident Lee Carter said the "board made a significant stand last night to ensure our local history is acknowledge and preserved".
"This move last night also sends a signal to council and developers that there needs to be some care and consideration taken when land is bought for developments.
"It's not all about the $$$, we need to ensure we take care of the land and the people."
There is no current pre-approved list for new roads in the Featherston area. Greytown's board approved a list of road names in February.