The provincial government says it's watching closely a brewing land dispute between the City of Regina and the Rural Municipality of Sherwood.

Both municipalities presented competing plans for development this month.

Last Friday, Regina unveiled a plan to expand its borders into RM Sherwood, which surrounds the city.

Meanwhile, the RM on Thursday released its own official community development plan which shows commercial, industrial and residential development in a ring around Regina.

The same day, a developer and the RM released plans to put a 14,000-person community in the RM just south of Regina.

The two communities used to have a joint planning commission, but that fell apart several years ago.   On Friday, the Minister of Government Relations Jim Reiter expressed concern about the way things were going between the two sides.

Under newly approved legislation, Reiter now has the power to intervene if two municipalities can't agree on how to work together.

"Certainly it concerns me because we need joint-planning in high growth areas, we encourage that, but it does give the option of us compelling the two municipalities to be in a regional planning authority," he said.

Reiter says he already has plans to meet Regina Mayor Michael Fougere and representatives of the RM in the next two weeks.

"The conflict's gone on too long and they need to sit down and come to some kind of understanding," he said.

Fougere says he's still not clear how much land the city and the RM are fighting over, but he wants the bickering to end.

"We have a great opportunity to benefit everyone," he said.

"Sherwood can benefit and we can benefit as well, but there is not always a meeting of minds. Clearly there's not in development and we need to work those things through."