The Government is not appealing a High Court ruling it reneged on an agreement stopping a group of Maniototo farmers from grazing sheep on the Ida Range.
Farmers were advised this week that Land Information New Zealand (Linz) had accepted the decision of the High Court at Dunedin which found it had reneged on an agreement to allow a group of farmers, known as the Soldiers Syndicate, to continue summer grazing of the 4400ha block.
The farmers say the summer grazing is vital.
Syndicate spokesman Philip Smith described the Linz decision as common sense, adding it brought relief after what had been a stressful period.
"We're absolutely delighted . It brings a bit of closure after a hefty fight."
After deciding to allow continued grazing, Linz then sought public submissions on the future of the land as part of the conservation estate.
The Department of Conservation proposed that together with the neighbouring Mt Ida Syndicate, the two blocks would form a large part of the proposed Otiake Conservation Park.
Mr Smith said the renewed grazing licence would allow continued grazing subject to monitoring the impact on the land.
"We've got what we wanted, which is no more than what we started with."
Linz business support manager Brian Usherwood said the department accepted the court's view that, having made a decision the land be designated as suitable for disposal by special lease, the preliminary proposal should have provided for that designation.
He said a revised preliminary proposal would be prepared proposing the property be designated as suitable for disposal as a special lease and Linz would consult the director-general of conservation on the preliminary proposal, including on the terms of the lease, as required by the Crown Pastoral Land Act (CPLA).
He said the preliminary proposal would be re-advertised for public comment, and a substantive proposal prepared taking the public submissions into account.
Mr Usherwood said the court decision should not affect the progress of the remaining few pastoral occupation licences which were at various stages of a compulsory review.