A compromise means the faulty Portobello pontoon is expected to be back in the water by January, but the issue of who pays for repairs remains unanswered.
The progress came after the Dunedin City Council accepted a ''without prejudice offer'' from original contractor Amalgamated Builders Ltd to repair the pontoon.
Acting parks manager Richard Dahlenburg said the issue of who paid for fixing the pontoon remained unresolved.
''This offer means the process of determining exactly what went wrong, and where the responsibility for that lies, will continue, but in the meantime it ensures that the public facility is available for use,'' Mr Dahlenburg said.
Depending on availability of tradespeople over the holiday break, the pontoon should be back in the water by mid-January, he said.
There was a risk the council would have to pay for the work, but having it done now, rather than later, would not make a difference on who met the costs.
Once the repairs were completed, the pontoon would be pressure-tested overnight to verify water tightness and then returned to Portobello.
A detailed analysis of what went wrong, which would help determine who paid for repairs, would be carried out after the pontoon was back in the water.
The pontoon, part of a $382,000 jetty project completed in 2012, was towed away for repairs in late August after holes began appearing in it and repeated underwater repair attempts failed.
It was supposed to be back in place in October.
Since then, discussions had been held between staff, the consultant and the contractor to work out what had gone wrong, who was responsible and how to get the pontoon back in place.
Otago Peninsula Community Board chairwoman Christine Garey said she was pleased with the outcome.
Under the circumstances, this was the best outcome for the community, who had been extremely patient, she said.
''The companies involved have done the right thing to work to get the pontoon back in the water as soon as possible, so that the community can enjoy it over the holidays.''
She thanked Octa Associates director David O'Malley for working behind the scenes with the council to achieve the outcome.
