The road, 36km from Queenstown, has been shut since Saturday morning as contractors worked to clear debris.
The Queenstown Lakes District Council said late in the afternoon the road would remain shut due to ongoing work to clear a major slip further towards Glenorchy township.
"It is impassable and dangerous."
The council said water was still pouring off the hillside, with more rain was forecast, and it was "highly unlikely" the road would be open on Sunday morning.
"Please obey signage which is there for everyone's safety ... Keep safe everyone and look out for others who may be less used to this sort of thing."
Police said at midday contractors were trying to remove about 1000 cubic metres of soil blocking the road. Motorists should avoid the area.
The council warned the heavy rain, combined with milder temperatures and strong winds, was the perfect recipe for rockfalls - especially on the Lindis Pass (State Highway 8), the Crown Range Road linking Queenstown and Wanaka, and through the Kawarau Gorge and between Frankton and Kingston.
A big boulder was spotted on the Crown Range on Friday night before the worst of the rain had come through.
The council said there were reports of trees down between Jacks Point and the Remarkables.
The Coronet Peak skifield has also been closed for the day, including Night Ski, due to high winds and heavy overnight rain. However, The Remarkables remained open.
Shotover Jet also cancelled its operations on Saturday.
The Wakatipu Wanderers versus Star rugby match at the Queenstown Recreation Ground on Saturday has been called off due to the bad weather.
Trees blocking Central Otago roads
In Central Otago, strong winds overnight downed trees on Cemetery Rd in Naesby.
It was too unsafe for workers to continue clearing them on Saturday and the road would not reopen until Monday afternoon, the district council said.
Mount Buster Road (the section between Dansey’s Pass Road and Little Kyeburn Road) is also closed on Saturday due to fallen trees.
