The latest Education Review Office (ERO) report on the school said there had been ''significant improvement in school climate, relationships, governance and management practices''.
ERO was confident the school could continue to improve its performance without external support, and would carry out another review in the normal three-year interval, instead of earlier.
Significant issues affecting the school were identified in an August 2012 ERO report.
These related to staff, board and community relationships, aspects of the curriculum and quality of governance.
They included staff feeling unsafe, under attack and under undue pressure, along with board of trustees members overstepping their governance roles, with a history of inappropriate community and board involvement in employment matters.
That led to the board requesting outside help and the appointment of Tekapo lawyer Nicola Hornsey as a limited statutory manager in September 2012, a role she completed in July.
(Ms Hornsey is now the commissioner at Waitaki Boys' High School.)
The latest report, released publicly, said Omarama School had made significant progress in addressing the issues.
Governance and management were now stable and effective.
There had been one principal since term four last year and the teaching team was working effectively together, the report said.
Relationships between the board, principal and staff were described as excellent.
Communication with the school community was being well managed, the report said.
Trustees were reviewing their governance framework and were acting within their policies and procedures.
Pupils had improved access to information technology and equipment, education outside the classroom was well managed, reporting to parents was clear and curriculum planning had improved.
A useful charter had been developed by the board and principal, with a focus on raising pupil achievement.
As limited statutory manager, Ms Hornsey had provided valuable support and guidance, managing significant employment challenges effectively, the most successful being the appointment of principal Dion Stechmann in term 4 last year.
The principal was providing high-quality professional leadership with the full support of the board.
He kept the Friends of the School groups and parents well informed.
When issues first emerged in 2012, the school had 29 pupils.
It now had 35.