A piece of land near Arrowtown once earmarked for a second campus for St Joseph's School could be subdivided for new housing.
Last November the Roman Catholic Diocese of Dunedin abandoned plans for a $5 million second campus for the school.
Now Highland Property Enterprises has applied for resource consent for a six-lot residential subdivision of the rural residential-zoned land.
The company's sole director is Highland Real Estate Group owner Kelvin Collins, of Queenstown.
The diocese, which covers the Wakatipu, fought and won a six-year legal battle for the right to expand the school to a 2.6ha site at Speargrass Flat.
Speargrass Flat residents went to the High Court trying to stop the 112-pupil school, appealing an Environment Court ruling which upheld the Queenstown Lakes District Council's granting of resource consent.
They lost the appeal and in June 2012 withdrew their appeal against that decision.
However, the diocese abandoned its plans for the site a few years later, citing the rapid growth in new housing and shopping developments in Frankton and Lake Hayes.
