Decontamination work in Stanraer could cost more than £2m, the BBC has reported.
The work would tackle chemical contamination on a former gasworks site that will form part of waterfront regeneration in the south-eastern town.
Dumfries and Galloway Council is working with the Scottish Environment Protection Agency on options for the site, which is to be marketed as a gateway to Scotland and a watersports destination.
The redevelopment of the waterfront will include new homes, green spaces and business buildings.
Dumfries and Galloway Council has previously said the transformation of the area will "enhance the relationship between town and waterfront" and "create attractive landscape settings" while using the town’s new marina to re-position Stanraer as a seaside town.
But the council's head of infrastructure, Stephen Herriott, said it was difficult to resolve what to do about the decontamination bill, as plans needed to be financially "robust".
He said: "We need to consider how we want to take that forward in relation to what we want to use the land for within the whole concept for the waterfront redevelopment."
The centre of Stanraer was refurbished for a February 2011 opening, the result of a £2.24m investment.
The end of the ferry service to Northern Ireland last year has been used as an opportunity to revamp and overhaul the town's environment and image.
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