Greymouth Police Station is "beyond end of life", according to a ministerial document released to 1News.
Dangerous levels of mould forced the station to temporarily close last year.
Built in 1948, the station cannot cope when it rains. Leaks from the gutters and deteriorated roof are a key issue, which have damaged computers and internet lines, risking a potential communications breakdown.
However, with the building now partially open, staff are forced to wear face masks on the top floor due to the state of the building, amid concerns long-term exposure could have on health.
Others work form home, and from a makeshift leased office nearby. At one stage, staff worked from a booze bus park on the footpath outside.
This prompted West Coast mayors and iwi to complain to the minister about what they called a "disturbing" and "completely absurd" situation.
Greymouth Mayor Tania Gibson told 1News: "They shouldn't have to put up with this situation.
"Our police station services the whole West Coast which is the same distance from Auckland to Wellington."
She said managing private and sensitive information is also a concern.
"[It's] the disruption as well of not having a main space to work and having to be moved around."
Meanwhile, Police Association president Chris Cahill said while some stations are at "critical risk of failure", this building is "the worst at the moment".
The ministerial document, sent to the minister in April this year and released under the Official Information Act, also said police property problems have reached a "tipping point" nationally and require significant spending.
Police Minister Mark Mitchell said he "wasn't happy" to find out the state of the Greymouth station.
"Unfortunately, a lot of our police property has been under invested for decades."
Police said the alternative spaces are "extremely limited", as many other buildings have failed seismic tests.
Across the road from the station, the local district court is less than 20 years old. However, in recent checks, it only met 15% of the national building standard.
So, transportable buildings are the next solution, which Greymouth Police area manager Senior Sergeant Brent Cook said will enable staff to get "completely out" of the building.
Police are now putting options to Mitchell, who said funding depends on next year's budget.
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