Marlborough Mayor Alistair Sowman says he is seeking legal advice now that the district council has been cleared of corruption allegations.
Mr Sowman says an independent inquiry by Auckland barrister Denis Sheard showed there was no foundation to allegations that were sparked by councillor Jamie Arbuckle.
Forty-six complaints were investigated by Mr Sheard but he concluded none was worth further investigation.
Mr Sowman says many were from people unhappy with particular council decisions and the claims have damaged Marlborough as a place to do business.
Mr Sowman says he has called on Mr Arbuckle to consider his future on council and has referred the matter to the council's lawyers.
The mayor says the cost of the inquiry could reach $250,000.