Denbighshire County Council has completed an assessment of gypsy and traveller accommodation and will be presenting its findings to the Welsh Government later this month.
All local authorities are required to undertake an up to date assessment by February 26 and every five years after that.
The 2015-16 assessment has been carried out jointly with Conwy County Borough Council.
This was as a result of the 2013 assessment which called for a shared transit site for the two authorities as a high proportion of unauthorised encampments occur in the north of the county in the border area.
The county does not currently have any authorised sites for gypsies and travellers.
Councillor Hugh Irving, Cabinet Lead Member for Communities, said: “The latest assessment has revealed a clear need for a transit site(s) or stopping place given the incidence of unauthorised encampments and under the Housing (Wales) Act, the Council will be required to address this need.
“The need for any future provision of sites is a regional issue, given the movement of gypsies and travellers in North Wales and the limited Welsh Government funding available for sites."
Councillor Barbara Smith, Cabinet Lead Member for Housing, said: “New guidance from the Welsh Government specifies that authorities should consider a regional approach in relation to the development of new gypsy and traveller transit sites and Cabinet has approved this approach."