The community centre in Lake Hawea seems likely to be made more than twice as big, giving the township a larger library and two bigger meeting halls.
On Tuesday the Queenstown Lakes District Council approved the application from Lake Hawea Community Association for a lease of the building and the extension of the centre.
The community building has been on a recreation reserve at Peter Fraser Park in Capell Ave since the 1980s, but without any formal lease.
Regardless of the proposed extension, lease agreements needed sorting out.
The council's intention to grant the lease was notified in August, and no submissions were received by the September 25 closing date.
The lease was granted for 33 years.
The extension plan for the centre was approved by the council, but is still subject to approval from the Minister of Conservation.
The extension, a 488sq m wing to be added to the existing structure, would more than double the centre's size.
Councillor Lyal Cocks from the council's Wanaka ward said the main tenant of the extended centre would still be the library, which would be expanded to 200sq m from its existing 80sq m.
The building would also house a two-hall structure with club rooms to seat 80 people and 225 people respectively, with capacity to combine the rooms.
The existing building, which also doubles as town hall for the local residents, only seats a maximum of 120.
New toilets and changing room facilities would be included too.
"There has not been a lot of room for creativity in the building. This will be a major improvement for Hawea," Cr Cocks said.