Waiheke Island residents aren't giving up on their fight to separate from Auckland Council.

The Local Government Commission yesterday turned down bids for Waiheke and Rodney to break away from Auckland Council.

It warned that both regions do not have the resources to manage the sensitive marine areas that they are responsible for on their own, and are too take over all of Auckland Council's functions.

The decision could be appealed but leader of Our Waiheke John Meeuwsen saod they're taking time to weigh up their next move.

"Bitterly disappointed, of course. All we can do is challenge the process by which they have arrived at their decision, and that's pretty tenuous, so we have to take advice."

Meeuwsen said if it's not feasible to take legal action then they will find another way.

"We will not rest on this decision and just take it at face value. We will consider our options and whatever happens we will continue the battle in some way or another."

The Northern Action Group, which wants to see Rodney break away, is intending to take further legal action or push for a binding referendum.