Ten former Dunedin artists from around the globe were in the city for their summer holidays, and gathered to paint what they called ''freestyle art'' on the waterway, near the corner of Leith Bank and Forth Sts.
They were all professional artists, with many of them doing commissioned work for companies, businesses and councils.
One of the artists, Nigel Roberts, acknowledged he had not gained permission from the ORC, but said the area had been ''a free-for-all spot'' for artists for many years, and he believed it brought colour to the area.
He also believed it was a nice thing to do for the community.
Initially, the ORC was annoyed because the artists had not gained council permission. ORC chief executive Peter Bodeker was concerned people were painting ratepayers' property without council approval.
At the time, he said ORC staff would respond to public complaints, and the artists risked having the art work removed.
But after seeing the artwork, Mr Bodeker was impressed, and said he had been in discussions with DCC chief executive Sue Bidrose about the issue.
He said both authorities were keen to see if there was a way to grant consent retrospectively so the artwork could remain.
''Now that I've looked at it, my personal view is that it is a very good expression of artistic endeavour,'' he said.
''I think it's smart. I think these guys are very clever.
''But we just need to find a way to consent it. There's issues about maintenance of it, and upgrading, and who looks after it now that it's there.''
DCC acting urban design leader Glen Hazelton said the council was trying to balance the ''spontaneity'' of artists working in this field, with the need to get the appropriate permissions.
''Staff are looking at whether it is possible to have resource consents in place for a range of locations, such as this Water of Leith site, so artists only have to gain permission from the land owner before proceeding.
''The district plan rules around murals, street art and public art are also being reviewed as part of the district plan review.
''In the meantime, it is important that people know which permissions they need to get, if they don't want to run the risk of their work being removed or falling foul of the law.''
