The $146,000 upgrade of the 2.7km track, from Bay View Rd to Willow Pl, began in mid-October and was expected to finish by Christmas.
Queenstown Lakes District Council project manager Russell Engelke yesterday said 70% had been upgraded so far.
"The two sewer lines, running the entire length of the existing track, have caused a delay to the digger operators.
"Caution is definitely the request from everyone. The community don't want sewage in the lake and certainly we don't, so we've pushed the deadline out two months.
"The community say we need to do it [the track] once and do it well and they said time is not the issue."
The upgrade was funded by the council, Wakatipu Trails Trust and the Kelvin Peninsula Community Association.
The cost had not increased because of the delay, Mr Engelke said.
The track is part of the Wakatipu Trails network and would help link peninsula residents with Remarkables Primary School, which accepts its first pupils next month.
Three operators from contractor Nichols Garden Group were re-establishing the existing track with a compacted gravel finish and widening it to 2m, where that could be done.
The width would allow for people to walk side by side, all prams to be manoeuvred on the path and so cyclists could pass pedestrians.
The contracting crew would install a pair of 5m-long, pre-fabricated wooden bridges on the track in early to mid-February, Mr Engelke said.
"I think the end result [is] we'll have a magnificent asset the entire community will benefit from."
