Instead, Fulton Hogan was told it needed a resource consent from the district council.
Fulton Hogan appealed the initial refusal decision earlier this year and lost.
At the time, CDC said that should Fulton Hogan resubmit its application and remove the proposal to store vehicles onsite, the council would "unfortunately have no grounds to decline the application".
The new Fulton Hogan application included the intention to build a 24m2 shed in which to store one vehicle.
A council spokesperson said, as a result, CDC was "unable to prevent the quarry from proceeding".
It is yet to be confirmed whether a resource consent from Greater Wellington Regional Council is needed.
In its application, Fulton Hogan said it would extract up to 1750m3 of aggregate per week, equating to 50,000m3 per year over a period of about 50 years from Totara Flats Farm.
This is the equivalent of 20 Olympic-size swimming pools of gravel extraction per year.
The proposal is for low-intensity aggregate extraction activities only.
No crushing or screening of materials would take place onsite.
Extraction would be done by a 25-tonne excavator and 25-tonne bucket loader and transported via a truck and trailer unit to an existing processing facility [the Waiohine Quarry], about 7km away.
The haulage of extracted aggregate would result in about 20-40 heavy vehicle movements per day [10-20 loads per day], and four light vehicle movements.
A single truck and trailer unit would be used to transport the aggregate, involving a 25-30 minute round trip.
The quarry would operate five days a week between 7.30 am and 5 pm.
Outside of working hours, one vehicle would be stored onsite within a shed, and other vehicles would return to the Waiohine Quarry.
The decision comes at a time when aggregate is in high demand nationally.
Previously, nearby residents had objected to the quarry proposal, citing safety concerns for users of the narrow Matarawa Rd.
They said a quarry was an "unacceptable industrial activity in a rural area" and that "Carterton ratepayers may end up footing the bill for the extra road maintenance".
"We believe residents of Matarawa Rd and beyond should have the right to be consulted," they said.
Submissions and feedback on the quarry would only be possible in a resource consent application process.
District plans must be reviewed and updated every 10 years.
The existing Wairarapa Combined District Plan is now 10 years old and due for review and renewal.
This review is currently underway and is an opportunity to influence how the council controls land use and subdivision in the district.
To find out more information on the process and how to get involved, visit www.wairarapaplan.co.nz.