Dr Smith was in the resort yesterday to announce Bridesdale Farm as the first subdivision to be fast-tracked under the new rules.
He took particular aim at the Arrowtown community, which has mounted a backlash against the Queenstown Lakes District Council over four special housing areas proposed for around the township.
''I've read some of the protest and concern that's come from the community in Arrowtown, and it does sound horribly like they would only prefer there were millionaires in their neighbourhood.''
The district had the worst housing affordability in the country, with a median multiple of house price to income of 8.9, compared with 8.4 in Auckland and 5.5 nationally, he said.
Many more special housing areas would need to be approved to address the issue, but he was concerned ''nimbyism'' could get in the way.
''If the community does not allow those sorts of areas of paddock to be developed into housing, then this place will remain unaffordable, and block jobs being filled by average New Zealanders.
''In my view, it'll miss the opportunity to build a long-term, sustainable community of average families where people are working in the visitor industry, and who have a long-term interest in early childhood, education and all those things that make a town a great place.''
He had a ''constructive relationship'' with the council, and was not considering using his powers to override.
Two of the 14 special housing area applications lodged with the council were withdrawn last week.
Four others - totalling 175 residential lots - are being subjected to further scrutiny before the council considers recommending them to Dr Smith for approval.
Another application, by a family trust of council chief executive Adam Feeley, is now the subject of an Auditor-general's inquiry.
The council signed up to a special housing accord with the Government last October, with a target of 1300 sections and dwellings being consented in the next three years, including 350 in the first year.
Queenstown Lakes Mayor Vanessa van Uden said getting the district's first special housing area approved and ready for the consenting phase was encouraging.
''It's one of a number of ways that we need to look at as a community to work together to solve the issue of people being able to live here, in good houses, and be part of the community.''
A council working group was now analysing the infrastructure requirements of four special housing area applications, and she expected reports on those to be in front of the council for consideration ''quite quickly''.
Bridesdale Farm, a 147-section subdivision next to Lake Hayes Estate, was the first special housing area application to be lodged with the council.
Its planner, John Edmonds, said a resource consent would be lodged with the council in a matter of days, and all going well, construction would start in September.
