An illegal and controversial shack on Nelson's historic Boulder Bank has now morphed into a houseboat.
The transformation appears to be a ploy to avoid looming council action, as a houseboat is allowed to be moored there.
The Nelson City Council issued an abatement notice after the structure was discovered on the Boulder Bank in September last year.
The notice was ignored and the council began legal proceedings to get the shack removed.
But a council spokesperson, Angela Ricker, says it will not continue through the courts as the structure is no longer considered a hazard. She says they have no idea who built the structure or even why.
Port Nelson is investigating compliance and safety issues that come under its jurisdiction.