Work on the final 3km of the Millennium track between Wanaka and Glendhu is progressing more slowly than hoped but is due to be finished by mid to late March.
The Millennium Track is about 15km long.
It starts at Waterfall Creek, near Wanaka, and finishes at the Glendhu Bay Camping Ground.
It is part of the Te Araroa Trail which, when finished, will wind the length of New Zealand.
The first 5km section from Waterfall Creek to Ironside Hill was completed several years ago by the Otago Regional Council (ORC).
The rest of the track is a joint $550,000 project between ORC and the Queenstown Lakes District Council.
The QLDC spent $400,000 finishing about 5km between Damper Bay and Glendhu Bay last year.
The regional council is spending $150,000 on the section between Ironside Hill and Damper Bay.
When contractor Fulton Hogan had completed about half the work the council discovered a boundary realignment was necessary, corporate services director Wayne Scott said in a report to the council's finance and corporate services committee.