The proposed second campus on 2.6ha of rural residential zoned land at 478 Speargrass Flat Rd would be administered by St Joseph's School, Queenstown.
It would replace the lodge which was bought with the intention of converting it into a campus until it was destroyed by fire in July 2006.
The purpose-built campus would house years 1 to 6 pupils from Queenstown, Arrowtown, Lake Hayes and the outer Wakatipu Basin and all years 7 and 8 pupils continuing to attend the Queenstown school, the decision by Justice Christine French said.
The satellite campus would consist of a 480sq m classroom block and a 220sq m administration block. A total of 43 car parks would be provided, along with playing fields and a hard court area.
Catholic Education Office director Tony Hanning said the intention was to first develop a block of three classrooms, with the fourth room set aside for administration and the library, until the second-stage block was built to house administration and the library, freeing up the fourth room as another classroom.