People and animals (dogs in particular) should avoid contact with the water and any mats that have formed at the waters' edge.
The Otago Regional Council also put out a warning yesterday saying people and their pets should stay out of the water at Lake Waihola.
It posted a warning online saying a colourful algae in the lake was potentially toxic blue-green algae (cyanobacteria).
It advised people and their pets avoid contact with the water and follow the instructions on any warning signs around the lake, until further notice.
• Benthic cyanobacteria can be recognised at rivers and streams as a green/brown slime on rocks, or dark brown/black mats at the water's edge. Several factors can contribute to the growth of toxic algae, such as high levels of nutrients or sediment run-off into waterways, a sudden increase in temperature, and low flows.
For further information you can visit www.es.govt.nz/toxic-algae.