Family court and disputes tribunal hearings are returning to Balclutha, but criminal hearings will remain in Gore until further notice.
Clutha Mayor Bryan Cadogan said earlier discussions with ministry staff had led the group to believe a temporary venue for criminal hearings had been found, but this has turned out not to be the case.
"It's really frustrating after this length of time and seemingly overcoming the hurdles, to not have a solution. But we're still optimistic that a solution can be found."
Ministry officials met Mr Cadogan, sector stakeholders and members of the Balclutha working group in Balclutha last month to discuss the approach to returning court services to the town.
Ministry of Justice general manager district courts Tony Fisher said the ministry had assessed several buildings in Balclutha including those suggested by the Balclutha working group.The St John Ambulance building was identified as the most fit for the purpose.
Court staff were in discussions with St John Ambulance Hall management to hold family and disputes tribunal hearings in the hall, and hoped to have rooms available for the next rostered family court session on April 24.
Mr Fisher said he expected disputes hearings will begin in the hall this month.
Mr Cadogan, who is also the spokesman for the Balclutha court stakeholders groups, said while he was glad to hear some services were returning to the town, the removal of local criminal hearings was providing the most difficulties for many people and organisations.
"It's imperative that criminal hearings are returned to Balclutha. It's extra travel, expense, and time for defendants, but also for witnesses, victims, and families."
Travelling to Gore for criminal court hearings also took its toll on lawyers and police staff, often requiring them to have longer working days and more hours driving, he said.
The Clutha District Council was "taking steps" to speed up the process, Mr Cadogan said.