Dunedin City Council planning staff are continuing their investigation into quarrying activities on Saddle Hill "but are not at the end point yet", resource consents manager Alan Worthington says.
It could be early next year before the council clarified the legal right of the owners to continue quarrying there, he said this week.
"It is not a straightforward matter ... I hope that soon into the new year we will progress to come conclusive point."
Saddle Hill is a landscape conservation area. Under the council's district plan, quarrying there is a "restricted discretionary activity" but is not prohibited.
The council's investigation began in August after it received calls from Taieri residents concerned the quarry was about to be expanded further into the profile of Jaffray's Hill, the smaller of the two Saddle Hill peaks.
Staff asked the quarry owners, Saddle Views Estate Ltd, to provide evidence of existing use rights which would enable it to continue quarrying.
Residents wanted the council to stop all quarrying until the matter was clarified, but Mr Worthington said at the time he did not believe there was a need for that.
He said this week he still did not believe there was any threat to the Jaffray's Hill profile. He understood quarrying was still being carried out in the base of the quarry but had not been expanded.