Queenstown's council has backed plans for a 380-room hotel complex near Arrowtown, after widespread opposition from residents who claimed it would ruin the site's rural character.
Waterfall Park Developments Ltd applied in April for resource consent for the development, which would include a wellness centre and conference space, at Waterfall Park and on adjoining Ayrburn Farm land.
Queenstown Lakes District Council planners have recommended the project go ahead, subject to various consent conditions, including earthworks and water management provisions.
The report states: "It is considered that the adverse effects of the activity will be no more than minor."
A total of 13 submissions were made on the plans. Twelve opposed the development, including several residents and the Friends of Lake Hayes Society, which argued the plans would increase the risk of sediment loss into nearby Lake Hayes and Mill Creek.