It will be converted into a waste storage site for Project Reclaim, which will tidy up waste from three local coastal dumping sites.
Waitaki district is home to three historic coastal contaminated landfills which are in danger of slipping into the sea.
There are two fly-tipping (illegal dumping) sites in Beach Rd, near Oamaru, and a closed landfill at Hampden.
A Waitaki District Council spokesman said from next month a contractor would be preparing a new landfill cell at the Palmerston landfill site, which would contain all the remediated waste from the three areas.
The new cell would capture 100% of the leachate and channel it into a new sewer line, allowing it to be processed.
The landfill was scheduled to close in 2027. However, the scale of the cell construction required the date to be brought forward, the spokesman said.
It was already only open six hours a week and operating at a loss.
At present it cost about $5000 to run the landfill as a public drop-off site. However, it recovered only about $1000 in user fees.
Any replacement facility was likely to cost even more, the spokesman said.
Customers were advised to use commercial providers or to use the waste disposal site in Hampden.
Two of the sites targeted by Project Reclaim are in Beach Rd, 3km south of Oamaru.
The last is the closed Hampden landfill, operated by the council from 1970 to 1996.
Between the three there is 30,000cu m of waste which needs to be removed to stop it from being released on to the beaches and into the ocean.
Most of the waste is at the Hampden site.
The remediation work is scheduled to be completed by August 2025.
Signage will go up at the Palmerston landfill this week announcing the closure and flyers will be given to customers.
