Dunedin police say they may not be able to legally remove protesters from the central city without breaching their right to protest.
About 25 people have been camping in the city's main public space, the Octagon, for 19 days as part of a global protest against wealth inequality and corporate bailout.
Dunedin City Council issued them with a trespass order on Tuesday night.
But its bid to evict the protestors has been unsuccessful with the occupiers taking no notice.
The council says there's nothing more it can do and is now relying on police to enforce the trespass order.
But Dunedin Area Commander, Inspector Greg Sparrow, says it's not a straightforward matter of removing people from the site, because it's a public space.
He says New Zealand is a democracy and there may not be sufficient basis to justify arresting and charging those involved under the Trespass Act.