Rotorua's floating wetland will be anchored permanently near Sulphur Point after it was identified as a potential aviation risk.
The wetland, which spells out Rotorua when seen from the air, was originally going to be moved to a site offshore from the Rotorua Airport. But airport management has decided against it.
"They were concerned at a possible risk to aviation from the wetland attracting birdlife," said Rotorua Lakes Council water solutions director Andy Bell.
The wetland was damaged in November 2013 after it looked like a boat had been intentionally rammed into it, the council said at the time. It was not known who caused the damage. It is moored at Sulphur Point and will likely stay there for good.
Mr Bell said repairs had been completed by the Northland-based company that built it and at its cost under warranty.