Many streets have become lined with rubbish since the majority of students returned to the city this week.
The council sent out crews to clean up the refuse yesterday.
Contractors would be out daily this week to ensure rubbish did not build up again, solid waste manager Ian Featherston said yesterday.
"We have to keep the streets clear, because otherwise it's going to be fuel for the fire."
After the reprieve, the council would "clamp down" on messy students by issuing $100 infringement fines.
The problem was often rubbish being put out in unofficial rubbish bags.
These would be stickered with warning labels, he said.
"We want them using proper DCC bags because it's a user-pays system. If they are not paying for it, the city is."
The council had also been proactive in its approach to students by setting up an information tent in the union to educate them on rubbish collection, recycling and composting.
"You have got to be prepared."
Campus Watch staff had expressed concerns about the amount of rubbish in the student area, despite a downward trend in street fires recorded since the team was launched in 2007.
The University of Otago worked with the council to remove rubbish where possible, but did not want to find themselves running a daily rubbish removal service, chief operating officer John Patrick said.
"Excess rubbish shouldn't be left on the street by residents. However, it is. Especially at this time of the year."
