Fianna Fáil have confirmed that they will not be supporting Donegal County Council budget proposals.
Councillors are meeting for the fourth day to try and adopt a budget for the year ahead.
Fianna Fáil and Sinn Féin are blocking a budget deal to protest the transfer of the water network to the new Irish Water company.
If the budget is not adopted by midnight, the County Council will collapse for the first time in its 118-year history.
This would lead to Environment Minister Phil Hogan appointing a Commissioner to adopt the county's budget.
The Fianna Fáil party whip, Ciaran Brogan said as it stands his party is not in a position to adopt the budget.
He told Highland Radio that he is disappointed that there was no-one from Irish Water present to address the Council.
"It's unfortunate that the county manager has confirmed to us that when he spoke to Irish Water in the last number of days, that they confirmed that they wouldn't meet Donegal County Council until March," he said.
"That in itself sends out a clear message from Irish Water that we're not really a priority for them.
"I think that's wrong - it's a disgrace."