Council planning staff are assessing documentation to see what existing use rights apply and whether there are any restrictions on expanding the quarry, which is located in a landscape conservation area.
The council may require the owners, Saddle Views Estate Ltd, to apply for a resource consent, or to seek a declaration of rights to quarry through the Environment Court.
But that process could take weeks or months, and residents are concerned increased quarrying activity may cause irreparable damage to the hill's profile in the meantime.
The 77 members of the Saddle Hill Community Group wanted the council to act now, member Dr Marjorie Orr said this week.
"We want a cessation of activities until the legal situation is clarified."
The group had not hired a lawyer and wanted the council to obtain a court injunction or an abatement notice, she said.
"We're just an informal group and we have no money. But we want all possible avenues and options to be explored to stop any further degradation of the hill or any threats to its outline."
Dunedin city councillor Colin Weatherall, who has been approached by the residents, said he believed the profile of Jaffray's Hill had not changed and the quarry had not expanded.
Council staff should be given time to consider the existing use rights issue, he said.
He had assured residents he would ask the council to stop any activity taking place on the benches at the edge of the existing quarry until the question of existing use rights was clarified.
Cr Weatherall said he briefed committee chairmen and senior council managers on Monday about residents' concerns.
As well as being worried about quarrying, residents have queried whether a third vehicle access point to the quarry installed about two weeks ago has council approval, and have complained about quarry trucks and logging trucks from nearby McIntosh Rd, above Brighton, causing significant potholes on Saddle Hill Rd.
Council transportation policy engineer Pieter Besuijen said the access point had council approval and was allowed under its district plan.
He believed the new access was in a safer place than another access point nearby, with better sight lines on to Saddle Hill Rd.
Council rural roading contracts manager Andrew Lord said an inspection of the roads on Saddle Hill on Monday showed the potholes were worse than on other rural roads within Dunedin city.
They were probably the result of the increased volume of heavy trucks, he said.
Contractors had been asked to inspect the road more often and fill any potholes.
However, the potholes would not be sealed in the meantime, Mr Lord said.
