The Government's going to take an initial hands off approach with the Auckland Council when the city's unitary plan is released later this week.

It has previously indicated it could step in and establish an Urban Development Authority to run the city's urban planning, if the council doesn't get to grips with the city's housing problems.

Building and Housing Minister Nick Smith said the Government will sit tight when the independent panel's recommendations come out on Wednesday.

"The Council has 20 working days to make a decision on that plan, and the Government is keen to give the council clear air to be able to make these pretty crucial decisions."

Labour Deputy Leader Annette King doesn't think Government intervention would be a good thing, unless there's a very good reason for it.

"Wholesale legislation going across elected representatives like councils is something that you'd do very, very rarely if you believed in local government and local councils."