A controversial land swap which has delayed the Ruataniwha Dam may not go ahead.
In March Forest & Bird appealed a High Court decision which allowed for a land swap so the Ruataniwha dam could proceed.
It is understood a Forest & Bird appeal has been successful.
"This decision is a major victory for New Zealand's specially protected lands. This land swap would have set a precedent for up to 1 million hectares of specially protected conservation land, which includes forest parks, conservation parks, and ecological and wilderness areas," says Forest & Bird lawyer Sally Gepp.
"This case goes to the heart of the purpose of the Conservation Act 1987, and upholds Forest & Bird's position that specially protected conservation land should not be subject to commercial or political whim."