The Logan City Council says it does not want to be "bullied" into taking over maintenance of a former toxic gold mine and dump at Kingston, south of Brisbane.
It says the Queensland Government no longer wants to maintain the 11-hectare site as it costs $31,000 a year.
In the late 1980s and early 1990s, homes were resumed and moved after people became ill from toxic sludge oozing from the ground.
Councillor Graham Able says the State Government should not pass the buck.
"I hope they're not big brother and force us into maintaining it - it caused a lot of stress," he said.
"People have died over the years because of the toxic problems we had there in the past."
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