Neighbours of proposed new fast-tracked housing near Arrowtown are gearing up for another fight.
The Queenstown Lakes District Council has already rejected two proposed special housing area plans - a 150-section development and a proposed retirement village - on Ayrburn Farm, next to Speargrass Flat Rd properties.
Winton Partners, a company associated with developers Chris and Michaela Meehan, wants to build 140 houses on the farm land and at neighbouring Waterfall Park.
Neighbour Robyn Hart said neighbours were "horrified'' and will fight the development, using similar arguments against the two failed proposals.
"The arguments about pollution into Mill Creek and Lake Hayes are even stronger when they've got housing directly adjacent to the creek, right in the catchment area.''
Waterfall Park is a resort zone with approval for up to 100 houses.
But the Winton Partners application says it is uneconomic to develop because of topography, ground condition and poor road access.
The expression of interest document says: "The land immediately to its south is much easier to develop due to the presence of existing large flat, sunny plains.
"Amalgamating the sites allows the reallocation of approved residential density across the combined site to deliver a masterplan that delivers a range of housing options whilst still respecting and maintaining the natural character and appeal of both sites overall.''
The proposal says it ticks all the boxes of the council's lead policy for special housing areas, on matters such as location, infrastructure and affordability.
It also promotes public access to the Mill Creek waterfall and improved walking and cycling links.
There are plans for 48 sites, or 34%, of 288sqm in the development and a further 39 lots sized between 450sqm and 650sqm.
Seven three-bedroom houses will be provided rent-free for 25 years for community housing.
Mrs Hart said the development would not meet the Wakatipu's affordable housing need, but simply provide more stock.
A council planner's report, written in February, into the Ayrburn retirement village proposal, said "the key risk involves proceeding with a development that is not adjacent or near to an existing urban development''.
The Government yesterday approved four special housing areas in the Queenstown area, including a 175-lot retirement village near Arrowtown.
