Yarm, Ingleby Barwick and Kirklevington could break away from Stockton Council to form a new local authority, the area's Labour MP warned this week.
Dari Taylor, MP for Stockton South, said a new authority reflecting the district's old North Riding of Yorkshire boundaries was a possibility, unless Labour Party infighting at Stockton Council ended.
A serious row has erupted, allegedly over its cabinet system, and 11 Thornaby councillors recently signed a letter attacking the leadership.
However, some insiders have suggested unofficially that the real catalyst for the rebellion is a perception among Thornaby councillors that other parts of the borough - like Bowesfield, Yarm, Egglesciffe and Preston Farm - are developing economically at Thornaby's expense.
This week, former Stockton mayor Coun Keith Dobinson accused the council of being undemocratic. He predicted mass resignations by disillusioned Labour councillors at next year's elections.
He said Stockton Council leader Coun Bob Gibson was dismissive and derisory toward Thornaby, and suggested a new borough he called CITY - Communities of Ingleby Barwick, Thornaby and Yarm.
Coun Gibson strongly denied the claim, saying the cabinet system was more open than previous systems. Residents overwhelmingly voted for it, he recalled.
But Mrs Taylor sensed deeper problems and this week attempted to install some sort of discipline by calling in the Labour Party deputy general secretary. It was a serious situation the party had to get a grip of, she said.
"There are councils of a similar size to Yarm, Ingleby Barwick and Thornaby in South Durham, which exist under a county council. It isn't impossible for something like that here," she remarked.
She recently held a meeting with the South Stockton cabinet member, Coun Steve Walmsley. He was subsequently unavailable for comment and could only tell the D&S Times: "It's all being handled by the Labour Party. There's nothing I can say."
The dramatic row has surprised some neighbouring councillors.
Egglescliffe Parish Council vice-chairman Coun Sue Ireland emphasised she spoke on a personal capacity because the council was in summer recess.
She remarked: "I and two Egglescliffe colleagues attended a recent South Stockton parish councils' meeting with Steve Walmsley. It was a regular meeting with representatives from Ingleby Barwick, Longnewton, Kirklevington and Thornaby. I didn't hear any talk of a break-away. It just seems to have come out of the blue and I'm amazed.
"From what I hear, it sounds like the old Yorkshire parishes want to split from Stockton. Egglescliffe is on the opposite side of the Tees to Yarm but has a lot in common with it. We work quite closely together but Egglescliffe doesn't appear to figure in this debate."
Ingleby Barwick's Conservative borough councillor, Coun Jennie Beaumont, attended the same meeting. She thought any splinter authority would be too small to deliver services.
"With hindsight, I suppose there were signs of unhappiness among Thornaby councillors at that meeting. However, they are part of the controlling Labour group and have the power to widen political representation.
"They could break that stranglehold by putting Conservatives or Liberals on the cabinet or making them select committee chairmen. But they choose not to."
She said Thornaby had received significant money and obviously had some problems. However, Yarm and Ingleby Barwick households contributed much in council tax but received little in return. There were 11,5000 voters in the Ingleby Barwick district but too few facilities
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