The Breede River Valley Municipality has indicated poor communication is to blame for disputes between rival taxi groups in the region.
Members of the De Doorns and Worcester Taxi United Association clashed over operating routes last week.
Police intervened by firing rubber bullets to disperse a crowd at the Worcester taxi rank.
The council believes a lack of consultation between rival groups and Road Transporting Board might have caused confusion.
Breede River Valley Municipality's Joseph January said they were consulting with rival groups.
"It's essential for us as a municipality to ensure the safety and the free flow of transportation in our area. That's why it's a matter of absolute concern for us."
The police's Mziyake Moloi added they were keeping a close eye on the situation.