The Young Valley and Gillespie Pass Circuit status has returned to normal, after the lifting of a high alert by the Department of Conservation yesterday.
However, the department's total fire ban remains in force, despite recent heavy rainfall.
A landslide dam and lake that formed in the Young Valley in 2007 is considered a potential risk to public safety in heavy rainfall.
Doc imposed the high alert on Monday. It is one step away from a "code red", which bans the public from the valley.
Wanaka Doc communications manager Annette Smith said yesterday the high alert had been removed due to the improvement in the weather and a drop in the landslide dam's lake level.
"A code red will not be required for this recent weather event and the status of the valley has returned to normal.
"On another positive note, the recent rainfall has deceased the fire risk in the region, for the time being, although the total fire ban will remain in force," Ms Smith said.
Despite the heavy rain, an extreme fire risk remains, Doc's deputy principal rural fire officer Trevor Mitchell, of Dunedin, said yesterday.
"Very dry conditions are being experienced, particularly in Central Otago and Wanaka areas, and there is an above-normal fire risk.
"A total fire ban is in place for all of the Queenstown Lakes and Central Otago Districts, and we take breaches of total fire bans very seriously.
The department is considering prosecuting a person who recently lit a campfire along the Queenstown-Glenorchy Rd, Mr Mitchell said.
Penalties for breaching a total fire ban include up to six months' imprisonment or a fine of up to $2000, as well as having to pay the costs of putting out any fire and the value of property damaged or destroyed in any fire.
Visitors can check the fire situation at Doc visitor centres or the local council.
Unattended fires can be reported by calling 111.
