Southland Emergency Management remains hopeful the Waiau River will move away from properties at risk of eroding into the sea, despite the mayor's concerns residents are at increased risk.
A state of emergency was declared earlier this month after rapid erosion from the sea and river threatened properties in Bluecliffs, where about three metres of land was lost in a day.
On Thursday, contractors opened the bar in an attempt to change the river flow away from homes with hopes that would happen over the weekend after Meridian Energy released more water from its hydro lakes and more rain fell.
Southland District Mayor Rob Scott has extended the state of emergency, saying the work was not finished and it was putting residents at increased risk.
"With the river flow increasing, and the heavy rainfall in Fiordland... the risk has actually increased to the residents, and without the protection that the relocated mouth would have provided, the rubbish site is also at heightened risk of ending up in the sea," Scott said.
Civil Defence Controller Simon Mapp said they were regrouping with the local councils to work out the next steps for the bar and the community tip.
"We, along with the Bluecliffs community, have high hopes that this opening will provide them with some relief to the erosion near their properties," Mapp said.
"We needed the weekend to assess [how] this has been as there are a number of factors at play such as the river flows, weather forecast and sea swells that impact the opening. This highly complex work was conducted by Environment Southland's experienced contractors and their safety was absolutely paramount in how this work proceeded."
Waste was dumped at the Bluecliffs community landfill from the 1970s through with illegal fly tipping taking place up until 2000.
Minister for the Environment Penny Simmonds announced $1.35 million in funding to help the regional council remove material from the landfill, including planning and remediation.
Local authorities had started clearing it but the situation became complicated by reports of possible explosives being in the ground.
Work on the landfill is expected to start in the coming weeks.