Derbyshire County Council and Derby City Council are formerly in dispute over a £94m bill for a share in a waste treatment facility.
Last year, the councils decided to fix and operate a waste treatment centre on Sinfin Lane in Derby.
However, in January 2024 the county council issued an invoice to the city council for £93.9m to recover its share of the costs of the project.
Derby City Council disputes the validity of the invoice and has triggered a notice of dispute, which includes the county’s refusal to formally include regular reviews of project progress, against the business case to fix and operate the facility.
The councils are now entering the next stage of formal dispute resolution processes.