A brick feature of a distillery more than 160 years old uncovered at the new hospital site in Dunedin will remain in place.

Te Whatu Ora Health New Zealand infrastructure and investment programme director Tony Lloyd said the feature was thought to be the floor of a kiln built by the New Zealand Distillery Company in the late 1860s for drying grain.

The New Zealand Distilling Company premises is highlighted in this photo taken by Burton Brothers studio from the spire of First Church in 1874. PHOTO: TE PAPA

It had been recorded and would be staying in place.

The New Zealand Distillery Company began producing whisky at the site in 1869 and operated there until 1875 when the premises were taken over by the Albion Brewing Company.

The company was started by Charles Ritchie Howden who also introduced golf to Dunedin and founded the Otago Golf Club.

Archaeologists carefully uncover the brick feature at the new hospital site. PHOTO: GERARD O’BRIEN

A court report from an issue of the Evening Star from March 29, 1875, said Mr Howden had charged one of his employees, distiller John Grant, with stealing whisky and gin from the distillery on March 25 that year.

The kiln continued to be used until the early 20th century when R. Hudson & Co moved its biscuit making factory to the site.