The state of emergency in the Southland community of Bluecliffs has been extended for another week.
It was first declared last month after rapid erosion from the sea and the Waiau river threatened properties.
About three metres of land was lost in a day.
Southland District Council Mayor Robb Scott said on Monday the extension until Sunday (10 March) would allow more time to work on opening the river bar to change the flow away from homes.
The council will also focus on plans to remove material from an old dump site the river and tides are eroding.
Scott said there were potentially explosives, asbestos, and other hazardous material in the dump.
A local state of emergency was declared on 8 February as the river swelled from recent heavy rain, taking gravel and sand with it.
Residents said they had been calling for action for more than a year. There are 18 properties there, although only six were home to permanent residents.
Some residents had raised concerns hydro lakes upstream in Fiordland were limiting the amount of water coming downstream and forcing the river to divert past Bluecliffs instead of punching directly through the gravel bar.
Meridian Energy development general manager Guy Waipara in February said the Manapōuri Power Station had been operating under strict resource management consents for decades, and the erosion threatening the homes was "the sort of coastal erosion we're seeing in other parts of the country, not the operation of the Manapōuri Power Station".
"The ongoing impact of climate change will mean more examples like this around the country, which is why it's critical we continue to decarbonise by increasing the amount of renewable energy we use within Aotearoa and globally."