The Torrance City Council called for an environmental impact report for the proposed residential development of the Chandler sand and gravel quarry, which straddles Rolling Hills Estates and Torrance.
The City Council ordered the developer to pay for the study after residents from both cities complained that the proposed planned community with 600 homes would cause traffic and density problems.
Torrance and Rolling Hills Estates officials will meet to and decide jurisdictional concerns.
The proposed project would involve a zone change and amendments to the general plan of both cities, said Rolling Hills Estates City Manager Harry Peacock.
Peacock told his City Council on Tuesday night that he thinks it would be easier to coordinate with Torrance now for a consensus on boundaries, levels of review and a delineation of land use.
"The key element is that the plan is acceptable to both communities," he said.
Peacock said that after the cities reach an agreement on who has the lead jurisdiction, the developer can draw up preliminary plans for review. Any zone changes would be based on the proposal.