The decision was largely weather-related, unit publicist for the Walt Disney Picture's movie Andy Lipschultz said yesterday, as the production wanted to take advantage of forecast good weather in West Otago.
Locals have greeted the news with delight.
Tapanui's Forest Lodge Hotel manager Jason Perriman said the Pete's Dragon crew had been a blessing for his business, and he was happy to see them stay.
The hotel had been accommodating crew, and on Saturday, April 11, the pub recorded its busiest night in his 16 years there.
''It was huge,'' he said.
''It's been amazing. They have doubled the turnover for the month over the bar by far.
''Locals are getting right behind it, as well.''
Tapanui Four Square owner Vicki Adams also embraced the news.
''All people talk about at the moment at the checkout is Pete's Dragon. 'What's happening today?' and 'where are they?' 'what are they doing today?' and 'what were they doing yesterday?' and 'have you met one of the stars?'''
Her daughter Emily McElrea (16) was ''rapt'' actor Wes Bentley, of the Hunger Games, had remembered her name, she said.
Ms Adams said one octogenarian regular had been brimming with enthusiasm after spending two days acting as an extra in the film.
''It has been the highlight of her world in probably the last 18 months.
''She got to meet Pete and they treated her like royalty.
''It's fantastic, it's wonderful. There's so much going on.
''When you walk down the street and there's an extra 150 people standing around on your main street, it's very exciting,'' Ms Adams said.
The film crew has increased the town's population of 750 by nearly 150%.
Mr Lipschultz said filming was originally planned to move to Teretonga Park race track, at Invercargill.
Instead, it would return to the closed set at the former Blue Mountain Lumber mill site.
Yesterday was the last scheduled day of filming on Tapanui's main street.
Filming will continue in the area until April 29.
