Queenstown Lakes District Council utilities general manager Mark Kunath confirmed yesterday Project Pure was now operating well, after failing shortly after it was commissioned late last year.
The contractor had fixed some minor problems, which also required the sealing of all points where odours could escape.
Project Pure is based at Wanaka Airport and when the plant failed on January 18, a large amount of sludge escaped on to land.
Alterations and repairs had included the replacement of brushes on inlet screens, excavation of the dispersal field, and obtaining spare plant parts. The plant was operating again on January 29.
Mr Kunath said the design and build contract's defect liability period had been expanded to May 18 to cover the period of malfunction.
Provided the plant had performed satisfactorily for three months by May 18, the defect liability period would expire.
The council would then pay the contractor at pre-agreed rates to operate the facility for the next two years.
"It is very good effluent quality, easily meeting the resource consent requirements," Mr Kunath said, in response to board members' questions.
Cr Leigh Overton said it was "very pleasing" to hear the quality of sludge was "standing up".