Forecast rain today is expected to raise the Lake Wakatipu level, but not beyond its peak, Queenstown Lakes District Council says.
Several houses were evacuated and businesses sandbagged their doorways late last week after rising lake levels threatened low-lying areas of the southern resort and nearby towns.
Yesterday, the lake's level had dropped 4cm from its peak and authorities said the immediate threat of flooding had passed.
However, with showers and gusty westerlies forecast today there were concerns the lake would rise again.
"At this stage we have rain falling in Queenstown, while that may be a little unnerving for the business community, the info we have is that the lake will not rise significantly," Queenstown Lakes District Council Mayor Clive Geddes said.
"The ORC [Otago Regional Council] estimates worst case scenario we could receive 40mm today. That would push the lake back up to just below the peak on Saturday."
At that level the council did not consider there would be any threat to premises, although wind could still create some issues, he said.
"The important thing is that we will continue to closely monitor rain events over the coming days and soon as we are able to understand the implications we will get that information to the business community," Mr Geddes said.
The majority of the estimated 35 retailers, who secured their premises against potential floodwater on Friday, had now reopened.
- NZPA
Queenstown on flood watch as rain threatens
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