The Clutha District Council plans to spend up to $40,000 fixing arsenic contamination on a private property neighbouring its Balclutha industrial park.
The contamination was discovered during routine testing of stormwater discharge from the former Balclutha sawmill site in January, but it came to public attention only this week after a concerned member of the public contacted the Otago Daily Times.
However, council chief executive Steve Hill said the council had fulfilled its obligations at the time by immediately notifying all those affected, including resident Rosebank business owners.
He said an alert was triggered when a contaminant test showed ''minimally'' elevated levels of arsenic in water discharged from the site earlier this year.
A second test had shown continued non-compliant levels of arsenic, a poison, likely to be present due to the tanalising of timber when there was a sawmill on the site.