The council has announced it will refuse to do any more on the eco-town project at Weston Otmoor until the scheme’s developers hand over more than£100,000 for work done so far.
The council says Parkridge had promised to pay for detailed work on the transport implications of plans to build 15,000 homes near Weston-on-the-Green, which is one of the government’s shortlisted eco-towns.
However Oxfordshire claims the company has not furnished the cash.
Oxfordshire leader Cllr Keith Mitchell (Con), said: "These developers have been shifting the goalposts on an almost weekly basis.
"As one set of pie-in-the-sky fairytale plans is shown to be a superficial sham, another appears - and proves to be equally appalling.
"The developers said at the outset that they would pay for the huge amount of work undertaken on their behalf to analyse the details of this proposal to build a brand new town.
"Having made that promise, we were stunned to hear that they have gone back on it. The bill currently stands at more than£100,000."