The Hundertwasser Foundation says it may have to pull out of its commitment to a proposed arts centre in Whangarei.
The foundation has agreed to provide plans and art works for a building designed 20 years ago by the Austrian artist, who died in 2000.
The public toilets he designed for Kawakawa have made that town a tourist destination.
But Whangarei District Council is still arguing over whether to spend $6 million on building the arts centre for which he drew sketches.
Hundertwasser Foundation New Zealand agent Richard Smart said the bickering over the project is insulting to the memory of the artist and the foundation could well withdraw.