Christmas Island shire president Gordon Thompson says the island's ability to house asylum seekers will come under pressure if further boat loads arrive.
The Navy intercepted another boat with more than 70 people on board near Ashmore Reef yesterday.
Mr Gordon says the latest arrivals can be accommodated, but it will bring the total on the island to close to 540 asylum seekers.
He says there is still room for single people but housing for families is more difficult.
In a separate development, seven people on Christmas Island have been granted refugee status and will leave today to settle permanently in Australia.
Immigration says the group includes Afghans, Iraqis and Sri Lankans.
Christmas Island is 135 square kilometres, has aa approximate population of 1,600 and 63% of the island is National park.
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