The Queenstown Lakes District Council has adopted the controversial brothel bylaw that will allow a "theoretical maximum" of nine brothels in the Queenstown CBD and five in the Wanaka CBD.
A brothel opponent said the decision would have brothel owners rubbing their hands in glee.
The bylaw, which was opposed by the majority of submitters, was carried unopposed at yesterday's ordinary council meeting and was hailed as being kept as "tight" as possible by bylaw hearing panelist Cr Lex Perkins.
"I've felt we've made it very, very tight downtown. I think we've protected the public as well as we can under the 2003 Prostitution Act ... if we didn't go down that track we could have spent some time in court," Cr Perkins said.
Previously, brothels were barred from operating in both town centres but under the Prostitution Reform Act 2003, the council faced a potentially costly judicial review by continuing to allow the ban.
The bylaw was adopted with amendments, including that commercial sex premises must be in permanent buildings constructed under Building Act consent and must not be at ground level or beneath.
"[This] is to ensure that a brothel is in a properly established building and not a temporary or mobile building. For example, you could not bring in a double-decker bus and park it on a vacant lot within the permitted area and operate a brothel from the first floor of the bus," council regulatory and corporate services manager Roger Taylor said.
The amendments were also designed to mitigate the clustering of brothels which could create a genuine red-light district.
Modelling of the "theoretical maximum" amount of brothels allowed in each permitted zone was calculated by applying a 100m horizontal and vertical separation between premises, Mr Taylor said.
Highlighting the theoretical nature of the model, one plotting circle fell on St Peter's Anglican Church. However, Mr Taylor said that it was "highly unlikely" the church would ever agree to a brothel on the site.
Conservative lobby group Family First opposed the draft bylaw and national director Bob McCoskrie told the Otago Daily Times yesterday he was disappointed.
"The council have obviously completely ignored the considerations of families and even the expert advice presented at submissions."
Mr McCoskrie said the council had "plenty of other options" to meet its requirements under the Prostitution Reform Act "but they've adopted the worst-case scenario. Brothel owners will be rubbing their hands in glee."