Swift action from the Local Government Minister - who's appointing a Commission to replace Tauranga City Council
Nanaia Mahuta alerted the council to her intention earlier this month, and it had 10 working days to respond.
She says it hasn't provided sufficient evidence as to how it's addressing its problems.
Mahuta says she'll be sending the Commission a strong direction to ensure the Tauranga community is engaged with - and consulted - on all significant council decisions.
She told Heather du Plessis-Allan that arguments from councillors that just needed more time to make it work did not sway her.
"The fact of the matter is there has been fragmentation around the council table for a while now, and it got to the point where it became untenable."
Mahuta says it is important for Tauranga that the citizens have confidence in the councillors, and letters and emails from residents made it clear that was not the case.