An appeal against the consent to shift Miller's Flat Church, by Poplar Lodge and landowners Adin May and Jackie Sly, was mediated independently of the Environment Court, in Queenstown, on May 29.
The lodge owners and representatives of the parish and Arrowtown Trust agreed on the details of hours of operation for the eventually tenanted church and the trust would consult the lodge owners on its future events.
The removal of the timber church, used as the St John's parish and community hall since 1959, clears the way for construction of the new consented $1 million community hall.
Site preparation, security fencing and excavations will begin on June 14.
"We're absolutely relieved and delighted," St John's Church building committee chairman Bruce Patton said.
"There's been cleaning action in the church and it's great to see everyone get stuck in.
"It's been three very concentrated years of work, with planning, design and hearings and all that entails.
It's been an exercise in compromise, first of all the site being historic and then design and height [considerations] and it all had to be sympathetic [to St John's].
"It will be all worthwhile in the end."
Arrow International was awarded the construction tender and subcontracted to Tate Construction, Peak Plumbing, Campbell Electric and Queenstown Engineering.
Arrow will manage the relocation of the Miller's Flat Church, the reattachment of its original porch and the enclosure of the complete building.
A 55-tonne mobile crane will hoist the church on to a Fulton Hogan flat-bed truck, which will transport it to a site in the orchard, behind Adam's Cottage, in a $20,000 operation paid for by the Arrowtown Trust.
The Miller's Flat Church was given without charge by the Wakatipu Community Church (Presbyterian) to the trust, which is responsible for the miners' cottages.
The trust will renovate the open space of the former church for a tenant, possibly an artists' co-operative, as part of its Heritage Precinct project.
The parish needs another $150,000 in donations and grants to reach the $1.2 million goal to pay for the new hall, it's furnishings and audio equipment, plus refurbishment of St John's Church.
"We're hoping with things visually happening, people will be more confident in giving money," Mr Patton said.
Construction of the hall was expected to take 20 weeks and, after landscaping and fitting out, the parish intends to open its doors by Christmas.