The Christchurch City Council has to decide whether to order the removal of a family's historic Banks Peninsula bach.

The Christchurch City Council has ordered the removal of a historic family bach from a large Banks Peninsula settlement.

The Stewart family have owned the beachside bach in Port Levy since 1940, but it was built on an unformed legal road and part of the property was also on land owned by Te Runanga O Koukourarata.

The runanga wanted the council to order its removal so it could push ahead with planned developments on the foreshore.

JOHN KIRK-ANDERSON/STUFF The Port Levy bach has been used by the Stewart family since 1940.

Tracy Stewart, who last year pleaded with councillors to leave their "little piece of paradise" alone, said she was "bitterly disappointed" at the council's decision.

"That is our family history they have just wiped away. My mum has been going there since she was a little girl."

Stewart said the family had offered to remove the part of the bach that was on Maori land, but that was not considered at Thursday's meeting.

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Peter Ramsden, deputy chairman of Te Runanga O Koukourarata, told councillors on Thursday the community was "totally insulted" the bach had stayed there for so long.

"We've reached a stage now after 70 years where we wish to have our land back and wish to be able to use it.

"We are totally insulted that there's a long drop...and people are defecating on our land."

Councillors were told although the property was rated by the former Banks Peninsula District Council, the Stewarts had no contractual licence to occupy it.

Councillors have struggled to decide the bach's fate and late last year opted to defer making a decision, for a second time.

But on Thursday, the council decided to order the bach's removal. The family has been given two years to remove the building.

Cr Raf Manji​ said it was clear the bach had been illegally occupying the land since 2005 and he was scratching his head to figure out why it had taken so long to resolve the issue.

Cr Yani Johanson said he did not understand why the council was ordering the removal of this bach when there were other baches in similar situations in other areas including Taylors Mistake and Kaituna.

Mayor Lianne Dalziel said it was "crystal clear" there were complete differences between the Port Levy bach and baches at Taylors Mistake and Boulder Bay.

"I do feel for the family that had that magic part of world available to their family for such a long period of time, but it's not a privilege we should turn into a legal right."

Cr David East said he believed the bach should be removed from Maori land, but it should be allowed to remain on the council's land.

He said the family could cut the bach in half or move it forward.

Crs East, Johanson and Jamie Gough voted against the removal of the bach.

A council report, written by transport planning team leader Richard Holland, said about 7 square metres of the 66sqm bach was on Maori reserve land and about 59sqm on legal paper road, which was within the planned area the council had been working with Te Runanga O Koukourarata to upgrade.

The council had committed funds to replace the public toilet, and upgrade the car park and general picnic area, but the proposed design for the upgrade would likely be compromised if the bach was not removed, he said.