The inlet has been blocked by natural causes and, as a result, water is being retained in the inlet, rising to the edges of the roads around it.
However, how the problem would be remedied was up in the air.
Dunedin City Council roading engineer Peter Standring said the council was in discussions with the Otago Regional Council, but there were problems associated with releasing the water from the inlet and any work could be undone by unfavourable weather.
Shepherds Rd was of particular concern, as it would be the first to go under if the water level rose, he said.
Water lapping at the edges of a road could undermine the road, causing potholes and washouts.
"We're keeping a close eye on it. As long as people can safely get around, we're happy, but if there's a safety issue ... we'll have to look at it."
An option was to raise the height of Shepherds Rd, but that could also cause issues with culverts, he said.
Otago Regional Council regional services director Jeff Donaldson said the council had no obligation to unblock the inlet and it was not included in its river management responsibilities.
There would be difficulties trying to get the water out, as well as the risk of another southerly blocking the inlet again.
The regional council would provide assistance and expertise to the city council if requested, he said.
