However, the applicant, Lindsay McLachlan, director of Peregrine Estate, said the new house was designed to look like 1880s houses and would complement the buildings.
Mr McLachlan's application for resource consent to build a second house on a 20.7ha site, on land potentially prone to flooding and a design that breaches the yard, maximum height, and skyline protrusion rules in the district plan was heard by the Central Otago District Council's hearing panel yesterday.
The panel has reserved its decision.
Neighbouring property owners Geoff Adams and Michelle Vizor said the proposed home would have significant negative effects on their amenity values and the two-storeyed building would be ''dominant'' when viewed from their property.
The contemporary building would be an intrusion in the background when people took photographs of the historic bakehouse, ''detracting from the heritage values the council is tasked with protecting'', the couple said.
''While aping historic shape and texture, the application seems oblivious to the effect of the proposed building on the real historic elements in the adjacent landscape,'' Mr Adams and Ms Vizor said.
A minimum side and rear yard of 25m is needed for a residential activity and the building would encroach by 3.4m, which the opponents described as ''a big breach in a rural environment''.
The house was ''so huge, it will never be out of our face'', Mr Adams said.
They felt as if they were in ''a David and Goliath'' situation and asked the council to deny consent for the house.
Mr McLachlan said the house was needed as accommodation for him and his wife, to free up the cottage on the vineyard, which would be used as staff accommodation.
Fifteen years ago, there were no grape plantings at Bendigo and now, the wines produced in the region were world-class and Peregrine exported its product to nine countries, he said.
Peregrine and many of the neighbouring Bendigo vineyards had won international wine awards, illustrating that premium wines could be produced in a relatively short space of time.
As part of its marketing, Peregrine hosted groups of wine buyers from overseas throughout the year, showing them the vineyard and explaining how their wine was produced.
'' ... we don't have to build the chateaus or castles that our European colleagues enjoy ... but the shed and the cottage don't cut it, so having a complex that shows we're a serious player is important,'' Mr McLachlan said.
The house would be sited to ensure the most privacy for the neighbours and there would be few windows on the side next to the neighbour's home.
High hedges would also be planted on the boundary for more screening.
Council planning consultant David Whitney has recommended consent be granted, subject to 16 conditions.