Taupo District Council staffers will move to alternate offices within three months due to fears around the building posing a significant health and safety risk after asbestos was discovered in its main premises.
The asbestos was discovered at the Lake Terrace building by a painter who was on site to give a quote for the cost of painting the old building.
A contractor confirmed the friable asbestos was present at the front of the 1960s building. Friable is one of the worst types as it means it can easily disintegrate and enter the air.
Taupo District Council chief executive Gareth Green said the building posed a risk to staff and visitors and its 125 workers would relocate once the council found suitable premises.
"We have received advice that unless we act the most likely consequence is significant harm."