The developers denied permission by the Environment Court to build six large houses on a 193ha site at Damper Bay, on the shores of Lake Wanaka, have withdrawn their appeal against the court's decision.
Court registrar Christine McKee confirmed yesterday its Damper Bay file was closed.
Damper Bay Estates Ltd lodged its appeal in February, claiming the court's decision was wrong and the court's two commissioners made "significant legal errors" in coming to their decision.
Damper Bay's directors are Aucklanders Trevor Farmer and Craig Heatley and Queenstown businessman Mark Taylor.
Environmental Defence Society executive director Gary Taylor said yesterday the decision to withdraw was a "good call" on the developers' part.