The Department of Conservation review reduces the three-tier system to two tiers and has the support of the Otago Regional Council and the Queenstown Lakes District Council, Doc community relations manager Annette Smith, of Wanaka, said.
Under the new system, "code green" means normal day-to-day conditions apply with no restrictions or warnings.
The second tier, "code red", will be triggered by either:
• A Metservice warning of a rainfall of 300m or more in the headwaters of the Otago lakes and rivers, or in the alpine divide.
• Significant earthquake activity in the area.
• Unusual or rapid rising and discolouration of the Young River.
If "code red" is imposed, the valley would be closed to the public until further notice and visitor centres, agencies, concessionaires and the media would be advised.
"We expect that this will be an extremely rare occurrence," Mrs Smith said.
However, she said lifting the "code amber" intermediary response "in no ways implies there is no longer any danger or that the dam is completely safe".
The integrity of the 1.5km-long dam in the north branch of the river has been closely monitored by geologists for a range of agencies since it formed in September 2007.
Doc took a cautious approach to public safety while studies were done and closed the valley to the public until November 1, last year.