Wenita tried to clear the debris earlier this year but was told to stop by the Otago Regional Council because of the damage caused to the stream by the machinery.
"It's just a huge muck around really. It's just been a nightmare," Ms Falloon said.
Ms Falloon, the Outram Hotel publican, was not living full-time at the site, but Mr Dunlop was and had been in his house for about 10 years.
He has had to find temporary accommodation.
After the ORC decision, the Dunedin City Council advised it was considering changing the way it maintained and repaired the road which leads to their properties.
"They are just doing their job but what am I supposed to do if I can't get back to my home? Everything I have is there," Mr Dunlop said.
Ms Falloon said it seemed both councils had washed their hands of the situation because it was too hard to fix.
Neither council was able to respond to questions yesterday.
Wenita chief executive David Cormack said the company had hoped to clear the debris and open vehicle access but the conditions made it impractical.
The company would continue to work with Mr Dunlop and Ms Falloon.