Dunedin City Council made the decision to purchase the Moray Pl property last year for the purpose of connecting deteriorating pipes between Bath St and Moray Pl.
Last year, a council spokeswoman said the area was at risk of flooding and sinkholes if nothing was done to remedy the situation.
Investigations into whether the site would be suitable for pipe realignment were due in November.
A council spokesman said investigations at Moray Pl had confirmed it was suitable for routing a new watercourse pipe in order alleviate the issues, and geotechnical information was being added into design and construction plans for the project.
However, the project would now be delayed until later in the year due to other major central city construction projects and events, such as the Thieves’ Alley and Fifa Women’s World Cup, he said.
"In the meantime, we are closely monitoring the existing watercourse main along Bath St, between lower Stuart St and Moray Pl, which is in a degraded but stable condition," the spokesman said.
The area had not yet had flooding issues because of a pump installed as a temporary solution.
Council contractors had earlier installed the pump on the Stuart St corner of Bath St to divert stormwater in December 2020, but plans and a budget for repair work were yet to be finalised.
"We don’t yet have a specific figure for Bath St as detailed designs and construction plans are still being finalised," the spokesman said.
There was $562 million budgeted over 10 years for Three Waters capital projects across Dunedin, and the Bath St Project was one of such projects funded through that budget, he said.
