Consent has been granted for a subdivision development on part of the Sugarloaf formation near Cromwell.
It will incorporate at least four residential dwellings and a vineyard or cherry orchard, as well as reserve sites.
Last month, Perriam Cove developer Dave Robertson applied to the Central Otago District Council for consent to develop the subdivision.
Under applicant Clark Rd Ltd, of which Mr Robertson is a director, he applied for consent to develop eight allotments opposite his $42 million Perriam Cove development abutting State Highway 6 north of Cromwell.
This is a version of a previous application.
In November 2007, he applied for consent to create 16 lots on the same site, under applicant Pisa Cove Ltd, of which he is also a director.
That application was declined and Mr Robertson subsequently appealed the decision.
His appeal was withdrawn and, in effect, replaced by the modified application recently put to the council.
The decision by the CODC hearings panel to grant Mr Robertson consent subject to 54 conditions was released yesterday.
It means three of eight subdivision lots will be vested in the council for reserve purposes, including a future reservoir site.
Four sections, three of which comprise part of the Sugarloaf terrace rise, may contain a dwelling.
The eighth lot, comprising 78ha of land predominantly on the tread of the Sugarloaf, can be developed for productive rural use, such as a cherry orchard or vineyard.
Access to the development will be from SH6 and Clark Rd.
Sole submitter Hatters Gully Ltd stated it would be a shame for development to progress on the western side of SH6 near Pisa Moorings.
It argued development on the eastern side was advanced with the likes of Perriam Cove.
CODC planning consultant David Whitney recommended consent be granted subject to 55 conditions, which would prevent cultivation or terracing of the Sugarloaf terrace riser.
It would also promote small clustering of dwellings on certain lots so the balance would be kept free of built development.
