Council says lab testing of air and water is a precautionary measure. It does not believe residents or business owners are at risk.

A number of torrential downpours to begin November have flooded several holes dug for yet-to-be-installed trees on the block. The CWD understands workers are struggling to get this water out.

Recent routine analysis revealed the presence of hydrocarbons at the site. The chemical compound found in bitchumen can cause health problems and in extremely rare cases lead to fire.

"To ensure we meet our work, health and safety and environmental obligations we are undertaking testing," Council's Director of Technical Services Ian Greenham said.

"We want to assure businesses and the community that we don't believe there is any risk, particularly with the damp conditions ... the safety of our people and community comes first."

Further analysis of air and water will be completed at a laboratory in Sydney before the end of this week.

Council says work on the street will recommence next week and its December 1 deadline for the project's first phase remains on track.

"We apologise for the delays caused but look forward to recommencing works next week," Greenham said

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