However it's understood teams will be permitted to practice within the current level 3 guidelines.
America's Cup Events were in discussions with the relevant authorities on Monday and issued the following statement in the afternoon.
"America's Cup Event Ltd and the competing teams are taking all of the necessary steps to continue to work in line with their Covid-19 level 3 working protocols as reviewed with WorkSafe NZ and the Ministry of Health."
"Within the respective plans and protocols there is a clear distinction between the individual teams' operations and official Prada Cup and America's Cup racing itself."
ACE indicated that Ineos Team UK and Luna Rossa would be able to train and sail under level three.
"Sailing, testing and training on the water is part of the core business of all teams.
"As practiced under the previous level 3 restrictions in 2020, the team's operations must be undertaken like any commercial business operating on the water, as well as on land, in line with their individual protocols developed with WorkSafe NZ and the Ministry of Health working safely under Covid-19 level 3 restrictions."
The forecast for Tuesday – with gusty winds and stormy seas – will preclude any sailing anyway.
Both teams continued their preparations on Monday, with a skeleton staff at the respective bases, confined in bubbles.
"Ineos TEAM UK are working closely with ACE (America's Cup Event Ltd) to ensure the team is fully compliant with the Government and Ministry of Health level 3 lockdown restrictions and guidelines," the British team said in a statement sent to the Herald.
The measures include team members working from home where possible, designated bubbles for those within the work space with social distancing and added PPE protection where necessary and in accordance with the guidelines.
Ineos Team UK said they will continue their preparations to race once the Government and Ministry of Health designate it is safe to do.
A spokesperson for the Luna Rossa team said work was ongoing at their base, in accordance with the protocols and instructions laid down by the event organisers and the government.
The situation is nothing new for both teams, who had to function under strict conditions during their preparations in Italy and England respectively in the first half of last year.
A spokesperson for the Challenger of Record (COR) said their 36-strong team was divided into different bubbles, with most people currently working from home.