The controversial 400-lot special housing area on the outskirts of the Lake Hawea township has been approved by the Government.
The Queenstown Lakes District Council advised on Tuesday the approval had been published in the New Zealand Gazette.
Mayor Jim Boult acknowledged there had been concerns from the Lake Hawea community, but he was “pleased with the increased delivery of affordable housing”.
“While the council listened carefully to the concerns expressed by some in the community about the SHA, we also recognised that we need to cater for growth in the district and that Hawea is increasingly being seen as an affordable satellite for those working in Wanaka.”
The developer of the Lake Hawea SHA, Universal Developments, would contribute 50 sections to the Housing Trust.
The Bright Sky SHA in Wanaka, which has 281 houses, has also been approved.
“These two developments will make a significant contribution to housing supply in the Upper Clutha and provide a much-needed 681 homes for the growing local population,” Mr Boult said.
Developers for both SHAs are now able to apply for resource consent under the Housing Accords and Special Housing Areas Act.