After being put on official notice last year, the Queenstown Lakes District Council has retained its ability to issue building consents.
The watchdog International Accreditation New Zealand (IANZ) released a report last April criticising the council's handling of building consents.
Since then the council has hired extra staff to meet IANZ's standards.
Building consent applications to the council have increased by 30 percent since 2014, with almost 2000 consent applications received last year.
The council's Planning and Development General Manager, Tony Avery, said staff were still struggling to manage the growing number of building consent applications.
Mr Avery said the council was recruiting more qualified and experienced staff to cope with the increasing demand.