The building, which had been sitting on the domain since the late 1940s, was picked up and stolen from its site on the Dunback Domain about Labour Weekend last year.
The Waitaki District Council said the building, scheduled for demolition, contained asbestos.
A photo had been taken of one of the vehicles involved in the theft, which had led to the council identifying the culprits, who had been made aware of the asbestos.
It was believed the building, which had been built by the Boys Brigade, had been moved to Dunedin City Council jurisdiction, just over the boundary with the Waitaki District Council.
The council did not lay a complaint with police over the theft.
Now in a new development, the Waitaki District Council in a council activity update wrote the Otago Regional Council had deemed the site where the stolen building sat would go on the hazardous activities and industry list (HAIL).
This has puzzled Waitaki District Council officers. It said it had fully capped the site as required for building demolition.
A Waitaki District Council spokesman said a contracted site assessment was done in late October and a second specialist contractor removed the remaining asbestos in early November.
There was then a follow-up site survey on completion of that asbestos removal, and the site was approved for reoccupation on November 4 last year.
A third contractor then removed the remaining building, and the entire building footprint was capped with topsoil just before Christmas last year.
Otago Regional Council compliance manager Tami Sargeant when contacted said the regional council received information an old building with asbestos was demolished or disassembled without the required controls in place, and as of yesterday, the regional council had not received information from the district council saying the area had been capped.
