Queenstown Lakes District council have warned flooding has been reported on the Mt Aspiring Road between the Mt Roy track carpark and Ruby Island Road and teams are on their way to inspect it.
A post on the Otago Regional Council's Facebook page said the council staff were continuing to monitor the muddy flow risk on Mt Roy.
It said water was running off the hill but was not sediment-laden and that currently, there were no signs of muddy flows.
"Our team will continue to keep a close eye on the situation, and residents in the affected area should remain alert to the potential hazard."
Mt Aspiring Road past the Treble Cone turn off was closed this morning due to surface flooding.
Otago Regional Council have maintained their warning to Wanaka residents in the Mt Roy area. ORC director of engineering, hazards and science Dr Gavin Palmer said
"While no mud flows appear to have happened yet, the warning to Wanaka residents in the Mt Roy area between Stoney Creek and Waterfall Creek remains current."
"As it may take a certain amount of rain to saturate the loose soil and generate run-off and muddy sediment flows, people are advised to remain vigilant and aware of potential flows for the duration of the rainfall," he said.
The heavy rain started overnight and has continued throughout the morning.
Today the normally packed lakefront is almost empty and traffic is having to contend with surface flooding on many roads.
The latest MetService forecast issued this morning said more significant heavy rain and strong winds were expected to hit the South Island.
A Severe Weather Warning for heavy rain in Otago remains in place from 10am Thursday through to midnight.
The rain is expected to ease around midnight tonight.
