The West Coast hot spot is being investigated for the potential of natural hazards which could not only impact the tourism attraction of the town but could see 300 people moving completely.
A fault line runs through the town as well as the already seen potential of serious flooding.
Last year 200 people were evacuated when the river took out a hotel in an unprotected zone.
The West Coast council has limited it three options, do nothing, add more river protection or move the town 10 kilometers away from the river.
Franz Josef currently attracts over a million tourists a year.
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