Late this afternoon, the council announced that Cr Mike Lord had mobilised members of his Rotary Club of Mosgiel, and together with the family would rebuild the tree house and ensure it met building requirements.
An anonymous donor offered to pay for extra building materials if needed.
Lord said he understood public reaction, however council staff had no discretion on this issue as an independently accredited building control authority.
"The DCC doesn't go looking for issues like this, but when we receive complaints our staff are obliged to follow up.
"Although councils don't make building laws, as an accredited regulatory agency staff have no ability to turn a blind eye to structures that don't meet legal requirements.
"This put them in a horrible position, and I am glad that together we have been able to sort it."
The last thing the council wanted to see was a children's tree house pulled down, so it sought a pragmatic way forward, he said.
His Rotarians would rebuild the tree house and council staff would provide advice to help ensure the rebuilt tree house met building regulations.
There were no specific guidelines for building a tree house, although the council was working on providing some high level guidance, a statement from the DCC said.
