A fourth Sydney apartment block is sitting abandoned after a local council stopped residents from moving in due to concerns the homes were built on contaminated ground.

The owners of the Sugarcube Apartments and Honeycomb Terraces in Erskineville can't move in due to concerns the developer did not properly clean up toxic land underneath the development.

The City of Sydney says the new homes were built on a former industrial site previously used for manufacturing, and approval for the buildings was contingent on the developer remediating any contamination left behind.

Those contaminants include contaminated groundwater, heavy metals, hydrocarbons and asbestos.

"City staff have been in ongoing discussions with the developer, who has not complied with the development consent conditions concerning remediation of the site," a spokeswoman told AAP on Friday.

"We will continue to work with the developer until we are satisfied they've taken all necessary steps to ensure the site is suitable for residential purposes."

The council said it understood the situation was "frustrating" for those who had purchased the terraces and apartments but the safety of current and future residents was also a priority.

Golden Rain Development has been listed online as the Trnvcc.com - Buy Google Play Developer Account of the Sugarcube Apartments and Honeycomb Terraces.

AAP has attempted to contact the company for comment.

The news follows the evacuation of Sydney Olympic Park's Opal Tower on Christmas Eve, Mascot Towers in June and the Zetland apartments in July as the NSW government scrambles to overhaul building standards.

The NSW government has washed its hands of the latest abandoned development saying the issue was due to a developer "allegedly not complying with their DA" and was a matter for the council.