The weed can choke waterways strangle native plants and pose a hazard to lake users.
In May of last year, Linz contractors sprayed a herbicide on the weed in the upper Kawarau. Further herbicide control work is planned for the river this month, if conditions allow.
The Lake Wakatipu Aquatic Weed Management Group has been established to oversee control work. Its members include Linz, the Otago Regional Council and Queenstown Lakes District Council, Ministry of Primary Industries, the Department of Conservation and commercial jet-boat operators KJet and Thunder Jet.
Ngai Tahu has been invited to join and the group will meet again next month.
An initial weed bed cordon extends 200m down the first major bend of the Kawarau River.
Queenstown Lakes harbourmaster Marty Black said commercial companies and jet boat drivers were required to keep clear of all weed beds until further notice.
"River cordons have been installed to make it obvious where the out-of-bounds area is.
"Drivers will also notice signage advising jet-boat drivers to switch off their engines before they head under the Kawarau Falls Bridge and into the lake.
Switching off the engine will help weed drop from the jet unit and limit the weed spreading.''
The council had closed the boat ramp below the bridge, accessed via State Highway 6.
Mr Black said human activities were the major factor in the spread of lagarosiphon, through the accidental transfer between water bodies on contaminated boating or fishing gear.