The ministry said it was "comfortable" a key part of the council’s approach was appropriate.
A requirement about testing soils at sites with buildings constructed before 1945 and coated with lead-based paint was not a blanket addition to a hazardous activities list, the ministry concluded.
It might have had a problem with the council’s approach if it considered the council was making a bulk addition to the register, the ministry signalled.
In a report for next week’s council meeting, staff said the council should continue with its existing approach.
They noted the ministry had not indicated the council was overreacting to the risk posed by historical use of lead-based paint in residential settings and there was no indication the ministry opposed the council’s approach.
In August, councillors asked staff to seek urgent formal guidance from the ministry.
Council regulatory services general manager Paul Henderson did so, and he said councillor concerns included that the council’s approach was considered almost unique and that it imposed high costs on the development of new housing and building alterations.
The council typically imposed a condition requiring testing of soils prior to works taking place.
The staff report for next week’s meeting said data captured so far confirmed it was considered "more likely than not" that sites with pre-1945 painted wooden or roughcast houses could pose a risk to human health or the environment.
Having received responses from the ministry, as well as expert technical and legal advice, and the data, staff said the council’s process was aligned with regulations and it should remain.
Staff would engage with the development community to look at possible mitigation options, the report said.
On Monday, the Otago Daily Times reported developments had stalled in Dunedin while the council awaited the ministry’s guidance.
"Some of our clients have definitely pressed pause on development," Terramark resource management planner Darryl Sycamore said.
