Water is flowing smoothly out of the damaged Haldon dam in Seddon after a second cut was made in the earthworks on Thursday morning.
The dam was damaged in the earthquakes that have hit the central New Zealand over the past month.
Marlborough District Council services manager Mark Wheeler said there is no sign of scouring and everything appears to be proceeding well.
Marlborough Roads and its contractors remain on call so that roads and bridges across Starborough Creek below the dam, can be closed if necessary.
However, water levels are being monitored. The council said that if everything continues according to plan, it expects alerts will be lifted by the end of the day.