In May, Tauranga City Council went to the High Court seeking a declaratory judgment to determine ownership of the strip and also sought an injunction preventing the group obstructing the construction of the pipeline.
On Wednesday, Justice Christian Whata released his judgment, ruling in favour of the council.
Much of the debate over the ownership of the road came down to what colour the strip was marked as on the original survey plan, which would determine what surveyors in 1883 had intended its purpose as. Public lands were marked on the survey with a "burnt sienna" colour and it was not clear whether the Matapihi strip was marked in this colour.
Following expert opinion, Justice Whata determined he was satisfied the strip was intended as a public road.
Matapihi Rd resident Tio Faulkner, named as defendant on the judgment, told the Bay of Plenty Times there were legal options for appeal and other pathways that could be explored to further contest the pipeline's construction and the decision whether to continue on this path would be made based on community sentiment and discussions with the council.
"The council must now work with all those residents that will be affected by the stench that will be coming out of the sewer vents right next to our homes and schools."
Tauranga Mayor Stuart Crosby said he hoped the judgment meant the work could now proceed without any further interruptions or objections.
"The judgment was unequivocal, no ifs, buts or maybes, that there is a paper road there and council is utilising it for the right purpose."
While the court process was under way, Mr Crosby said the council had been working with adjacent land owners and had made "good progress". Land owners were concerned about "breathers" from the pipe and where these would be located.
Once the pipeline had been laid through the strip, the council planned to revert ownership of the land back to iwi.