The Local Government Minister is seeking advice from officials after a judicial recount overturned one of the results in the Whakatāne District Council's election.
After the initial vote count, newcomer Hinerangi Goodman and the previous seat-holder Alison Silcock were tied for a councillor position.
Mrs Goodman won the seat after her name was pulled from a hat.
But a judicial recount overturned that decision, and Mrs Silcock was declared the winner by a single vote.
The incident has caused a lot of debate in the Whakatāne district about how fair the process was, with some people calling for change to prevent a similar outcome in the future.
Questions have also been raised as to why the council held its swearing-in ceremony knowing its election results were uncertain.
Mrs Goodman was sworn in at a ceremony on 25 October despite Mrs Silcock lodging a request for a recount of votes the day before in the Whakatāne District Court.
The minister, Nanaia Mahuta, said it seems odd to have a judicial recount after a tie-break selection and the swearing in of a candidate.
She said there may be a need for legislative clarity on such scenarios.