Angry Norfolk leaders want the government to pay them back for costs racked up through now withdrawn plans to axe and replace the county's councils with three new ones.
But their calls could be rebuffed, with Labour government ministers insisting money spent so far has not been wasted and will help when fresh reorganisation plans are developed.
The precise figure for how much has been spent paving the way for the creation of three new councils, serving Greater Norwich City, West Norfolk and East Norfolk, is not clear, but some authorities say they have spent at least £500,000.
Reform-led Norfolk County Council has also paid lawyers to prepare the legal challenge it had mounted against the government's original decision for three unitary councils to replace Norfolk's existing eight.
Robin Hunter-Clarke, deputy leader at County Hall, said: "We are going to fight to get our costs back because of the government's nonsense decision.
"It would be usual for government to now pay our costs. We were right to fight this."
Angela Rayner, local government secretary, announced on Monday that she was withdrawing the decision by her predecessor Steve Reed that Norfolk should have three councils, after advice from lawyers.
It was part of a pause on local government reorganisation and affects 18 areas across the country, with Norfolk and Suffolk.
A number of Norfolk councils said they now want money they spent paving the way for the shake-up - which was due to see new councils created in 2028 and elections for shadow authorities next May - reimbursed.
Steffan Aquarone, Liberal Democrat MP for North Norfolk, challenged Ms Rayner on that issue in the Commons.
He said: "One question will be about the future of devolution for Norfolk, but what people in north Norfolk will be thinking first is 'we want our money back - will she give it to us?'"
Ms Rayner said: "I would push back a little on that, because I do not think that money has been wasted.
"I have said that I want a review, and I have put a pause in place to carry out that review and ensure that I get it absolutely right as the secretary of state.
"I do not think that money is wasted. I have been really clear that the government have committed to providing transitional funding.
"I want to continue to work with the local leaders so that we can get local government reform on track, but I want to be confident that I am making the correct decisions for his local area and with his local area, delivering what it wants."
She added: "I have said on record that people across Norfolk, and representatives from across the whole conurbation, have put in a great amount of work.
"I want to respect that work, as the new secretary of state, and make sure that I am listening, that I have reviewed the decisions, and that I am making the correct ones."
Lucy Galvin, Green leader of Norwich City Council, said: "We engaged with this process in good faith, investing significant time, effort and public money, so it is deeply frustrating to see yet more uncertainty caused by the government’s failure to get its own house in order.
"The government must now provide urgent clarity on the way forward."
Carl Smith, leader of Great Yarmouth Borough Council, said his authority would be seeking reimbursement.
He said: "The situation is now a complete mess with a huge amount of time and resources being spent on getting to this point in the process. Along with others this authority will now be seeking to recover all our costs as a result of the government’s announcement."
Brian Watkins, leader of the opposition Lib Dem group at County Hall, said: "The whole situation is just pure chaos. The result is Norfolk is probably left with no reorganisation, no devolution, and a huge bill to pay."
Maxine Webb, leader of the Green group at the county council, said: "I don’t think this Labour government could have made a worse job of the whole devolution/local government reorganisation programme if they’d tried."
The withdrawal of the decision means next May will see all-out elections to Great Yarmouth Borough Council, North Norfolk District Council, Broadland District Council, Breckland Council, South Norfolk Council, West Norfolk Council and a third of councillors at Norwich City Council - on existing boundaries.
As it stands, Norfolk and Suffolk are due to get an elected mayor in May 2028, as part of the government's devolution drive.
Ms Rayner has said: "This review does not impact on the timetable for devolution."
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