The performance of Boscombe's £3m artificial surf reef since it opened has been sub-standard, Bournemouth Borough Council has confirmed.
The findings came from experts at Plymouth University who assessed the quality of waves enhanced by the underwater creation over six months.
The team found the surf reef only achieved four of its 11 objectives.
The council said it would withhold a £150,000 payment from its creator, ASR Ltd, until it is satisfied it works.
The New Zealand-based firm denied the reef failed and said it was only one of the criteria - the wave lengths - which it had not met.
Plymouth University, home of the UK's first marine institute, has been assessing the quality of the reef's waves and the number of days suitable for surfing since last September.
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