Bunnings is allowed to build a warehouse retail outlet in Queenstown, after the Environment Court overturned rejection of the scheme by independent hearing commissioners appointed by the Queenstown Lakes District Council.
The court has given the Australian headquartered business the opportunity to develop its first store in town.
In April 2017, Bunnings applied to the council for resource consent to build the store on a 1.6ha site on State Highway 6 at 148-150 Frankton-Ladies Mile Highway.
But commissioners declined that last March, so Bunnings appealed it in the Environment Court.
Bunnings will build a warehouse of 8100sq m and the court said the site was on the Frankton Flats, "the principal gateway to the Queenstown urban area''.
Bunnings said the site was ideal to serve the booming Queenstown construction and trade supply market.
There was "exponential'' demand for housing in Queenstown and Bunnings would increase competition in the market.
That would therefore lower the cost of housing in the area, Bunnings argued. The land was also near the existing industrial area and that would help the business to supply trade goods.
Bunnings said Mitre 10 MEGA, PlaceMakers and Pak'nSave were also established on the Frankton Flats, within 1km of its site. Resource consents had been granted for non-complying retail activities in the area.
That area was also in a state of development and urbanisation with many commercial, retail and light industrial buildings either finished, under construction or about to start, Bunnings argued.
But the decision noted how since its initial application, Bunnings had also redesigned its proposal to fit more into the surrounding area and contribute to Queenstown's gateway.
Site layout, landscaping, materials and colours were now all taken into account.
The new building would not be the standard Bunnings Warehouse and signage and building orientation had also been changed, the decision said.
The judges expressed concern that the council witnesses had only focused on industrial land supply and did not take into account commercial land.
The decision cancels the council's decision and grants resource consent, subject to conditions.