New Zealand Post's rural post division this week sent letters to the 52 residents who have a postbox at the town's sole shop, the Point, telling them that service would stop from June 1.
From then, the local rural delivery contractor would deliver their mail to mailboxes around the township.
But some locals contacted yesterday said they preferred their mail to be left at the store, as it supported the township's sole retail business, and picking up mail there doubled as a social occasion for many.
Colin Paterson, who took over the store just six weeks ago, said he could not believe there had been no talk of the move until he and others received their letters this week.
"It's not a good look, to be honest. There has been no correspondence about this at all. We have just been told that is how it is going to be."
Mr Paterson and his staff receive the mail for those residents with postboxes on weekdays.
They sort it and place it in the postal area for residents to pick up during the day.
The store receives about $540 a month from NZ Post to provide this service.
But that will all change on June 1.
Mr Paterson said he hoped locals did not think it was he, in his capacity as the new store owner, who had made the changes.
A letter from the company to residents said that "counter service" was traditionally only available to people who visited the area and needed a temporary postal service or those who lived in areas where delivery was not an option.
"Would you please now make arrangements to obtain and erect a suitable rural mailbox for the delivery of your mail," the letter said.
It names rural retail stores where the mailboxes can be bought, and tells residents how high they must be off the ground.
It also suggests some houses may want to create "nests" or groups of mailboxes in the one area.
"Please ensure your mailbox meets New Zealand Post's rural delivery criteria . . . i.e., pull-down front door and flag for mail pickups," the letter said.
The letter from Rural Post's Dunedin regional contracts manager, Mike Wyatt, said those who made the change would receive a free redirection service until the end of the year instead of paying the usual charges.
For those who did not want to use the rural delivery service, it suggested leasing private boxes in Balclutha.
Mr Wyatt could not be reached for further comment.
Long-time Kaka Point resident Glennis Woods was infuriated with the decision, saying it was unfair to "punish" locals who enjoyed the service provided by the store.
"To not even have warned us about this is just not good enough," she said.