KEY POINTS:
Queenstown remains wary as neighbouring Lake Wakatipu has risen towards levels that threaten to flood the tourist mecca.
Properties along the shores of the lake are most at risk, as people in the area are expected to get 24 hours' notice of an impending flood.
The last major lake flood, in 1999, caused three weeks of lost business for Queenstown retailers and cost the local economy an estimated $56 million.
"Public health is also an issue. The floodwater won't be very clean," said Otago Regional Council spokesman John Threlfall.
The lake level was yesterday hovering around 310.5m. The first "flood risk trigger" level is 310.8m, when those in the most at-risk areas are officially warned to prepare. Once it reaches 311.25m, a flood is expected.
A combination of rain and snow-melt means the lake is usually highest at this time of the year.
The lake level was dropping slightly late yesterday after a clearance in the weather, but a heavy dumping of rain in the river catchments could cause another rise.
Anne Halson, who owns a food bar in the lakeside Wakatipu Arcade, said the flood risk was always a concern.
"The cost of [a flood] is the loss of income, and the responsibility for the staff I have."
