Slumping in the creek bank escalated at the time of the spring rain event in early October.
It followed earlier rock-armouring work by council in the same area.
As a result of the bank being eaten away, the security fence and its posts on the Oamaru Creek boundary of the camp have been left suspended in mid-air.
The previously commissioned rock armouring now sits isolated like a barnacle in the middle of scouring on either side over about 40m.
The problem was described in a council activity update for elected members on December 3 as requiring "additional urgent work".
District assets manager Joshua Rendell said the area had become "severely scoured which has limited camping spots available at Top 10".
Council recreation manager Lindsay Hyde said an engineer had been engaged.
This was to provide interim advice on the creek bank’s safety.
"As a result, the fencing that we had in place was adjusted to provide a safer area for visitors to the Top 10 Campground.
"This was a smaller area than was originally fenced," Mr Hyde said.
Council staff had also been working with the Otago Regional Council and an engineer to provide some options and costs to gauge the best way of "moving forward".
Council infrastructure manager Joshua Rendell said the council, as the landowner of the camping ground area, would be assessing the costs.
"We'll also be discussing options regarding the terms of the lease the holiday park has, with the reduction in the available use area."
