The Queenstown Chamber of Commerce is advising flood-threatened Queenstown businesses to check all the available information before they decide to reopen.
The district council says Lake Wakatipu will continue to rise on Friday night by about 20cm and that some flooding in streets is possible.
The lake will remain at that height for up to nine days, and any heavy rain could trigger further flooding.
Chamber of Commerce chief executive Ann Lockhart says businesses should make sure they are still able to remove stock and furniture quickly if they decide to reopen.
Ms Lockhart says businesses should seek advice before they decide to reopen because things will remain subject to sudden change while the lake is so high.
Houses are being threatened in a small lakeside settlement near Queenstown.
Two houses have been evacuated in Kingston and as many as six homes are in the danger zone.
Queenstown Lakes District Council communications manager Meaghan Miller says one of the homes evacuated is surrounded by water, and the other has problems with sewage.
The furniture from a third house has been moved out as a precaution.
Ms Miller says some other low-lying areas of Kingston are now under water.
Queenstown Lakes District Mayor Clive Geddes expects to see significant ponding in low-lying reserves and parks on Friday, but is hopeful that businesses will not be affected.
The council says a watching brief on the level of the lake could last into next week.
More bad weather is expected on Monday.
Caution advised for trampers
The Department of Conservation is advising trampers considering back-country trips to take extreme caution.
Walking tracks in the Southern Lakes have sustained severe damage following heavy rain in the area.
Queenstown visitor centre manager Andrew Evans says bridges have been washed out and trees brought down.
Some tracks have been affected by slips, but a full assessment of tracks such as the Routeburn, Greenstone Caples and Dart Rees has not yet been possible.
The department advises trampers planning a trip on any tracks to check with the Queenstown visitor centre before they set off.
