Lakeview is the preferred site for the proposed convention centre and SkyCity Entertainment Group is the preferred operator, but no final decisions have been made.
Many who live in the cabins work as housekeepers or other essential resort jobs, the residents including young couples, young families and groups of flatmates.
Residents such as Emi Kanayama and Peti Seiuli have lived in a cabin for the past two years and they have made a written submission against the proposed convention centre being on Lakeview.
The masseuse and musician are not against the convention centre but question where people on lower wages in Queenstown will live if the cabins are removed to make way for the $50 million centre.
''I think the centre is a good idea, but I think Lakeview isn't a good site ... because of Queenstown's lack of affordable housing,'' Mr Seiuli said.
He worried about the ''mass displacement'' if people were removed from their cabins.
It is estimated the 150 small cabins, half of which are owned by the council and the rest privately owned, house around 100 people.
Some of the cabins are vacant. Queenstown Lakes District Council chief executive Adam Feeley said the cabins were on both freehold and reserve land and only had a licence to occupy council land until 2015.
It was inevitable some of the cabins would need to be removed, ''but it is too early at this stage to say how many'', he said.
Many were in a poor state and, while they might be considered affordable, ''many would be regarded as far from appropriate in terms of insulation and quality - not to mention visual appeal - that is appropriate to CBD Queenstown'', he said.
Ms Kanayama said she and Mr Seiuli both ''really like living here; we don't want to move out''.
Every day people were asking what was going to happen and ''how long we can live here?''Mr Feeley said houses built on high-value land were not affordable unless someone chose to subsidise the cost.
Estimates suggested Lakeview land values could range from $1000-$5000 per sq m, while ''affordable'' residential land was considered to be in the range of $400-$500 per sq m, he said.
''Accordingly, no-one could seriously suggest that Lakeview is `affordable' land, but rather that it could be used for such purposes by discounting its value.''
As of yesterday morning, 730 submissions had been received on the proposed centre after councillors voted to consult the public a month ago.
Next Tuesday, oral submissions from the public will be heard on the proposal and a week later an extraordinary council meeting to consider the convention centre proposal is scheduled.
