The wooden balcony collapsed during a private performance by the band Six60 on March 4, 2016.
One of the students, Bailley Unahi from Winton, suffered serious spinal injuries.
Many of the injured were standing underneath the balcony when it collapsed.
A police investigation determined no criminal offence occurred.
Otago Costal area commander Inspector Jason Guthrie said police would not be laying any charges in relation to the incident.
At the time of the collapse 18 people were on the balcony but it had only been designed to hold a maximum of eight people, Insp Guthrie said.
Video evidence showed reports that people were jumping up and down on the balcony at the time were not correct, he said.
Materials used and the construction of the balcony also did not contribute to the collapse.
Police would continue to work with the University of Otago, the Dunedin City Council and other agencies to ensure a similar incident did not happen again.
A detailed report by the Ministry of Business, Innovation and Employment released last year found the balcony collapsed because the load at the time exceeded the design capacity of the timber joists supporting the balcony.
A Dunedin City Council investigation came to the same conclusion.
In statement, a University of Otago spokesperson said that the university welcomed the results of the investigation.
Party organisers would continued to be encouraged to involve the proctor and Campus Watch in their planning for events and utilise their expertise, the spokesperson said.
Otago University Students Association vice-president William Guy said there had been a concerted effort to get students to inform the proctor before they held large private events.
It seemed students were more aware of the health and safety risks around holding large events and were more proactive in advising the OUSA or the proctor beforehand, he said.
‘‘I know personally know of a number of students who have gone to the proctor before holding a party or something similar and we definitely encourage them to do that.’’
Richard McKnight, a 50% shareholder in company Ogato Investments Ltd which owned flats in the block at 598 Castle St did not wish to comment on the police investigation.
