Glenelg Shire Council has been advised it does not have the authority to intervene with protesters at the Portland Aboriginal Tent Embassy.
In a statement, council said the protests were relevant only to state and federal government issues and it could not remove people or property from the tent embassy, which has been set up at Market Square since February.
Council said its legal team advised there was no quick solution: "The protesters have a right to protest, charter rights for the free expression and perhaps native title rights, all of which may limit the ability of the council to remove them."
Council contacted the campers and government ministers on Friday to communicate the details of the resolution, but mayor Gilbert Wilson said it was up to protest organisers to arrange meetings with local members of parliament.
"I don't think any local member has gone to the tent embassy yet," Cr Wilson told The Standard.
"Member for Wannon Dan Tehan has indicated he would come down if requested by the organisers, so in regards to local politicians it's up to the organisers to approach them.
"We're doing everything we can to get the state and federal government to talk with them, because all the issues are centred around state and federal issues."
He said residents' complaints had fallen with growing awareness.