An appeal against a decision to allow the redesignation of land for a wastewater treatment plant at Clyde is to go to mediation.
Environment Court case manager Chris Jordan confirmed an appeal had been lodged.
The Central Otago District Council's application was heard by commissioner John Matthews and the decision was released in July.
George and Nickie Gallagher, who own Claudleigh Estate, a vineyard on Muttontown Rd beside the council land, have appealed the decision.
The appeal is with an appeals officer who is organising a commissioner to try to find an amicable agreement, Mr Jordan said.
The Central Otago District Council (CODC) has applied for the redesignation of the 5.3855ha site, after the original designation lapsed in 1998.
At the hearing earlier this year Mr and Mrs Gallagher told the commissioner an independent valuer had said the values of properties in the area could drop by 45%-55%, or up to $800,000, if the designation was put in place, and that was without a wastewater plant being built on the site.
The location of the plant would stop the expansion of Clyde, Mr Gallagher said.
The land on Muttontown Rd runs down to the Clutha River, and would be used in the future to build a treatment plant to treat wastewater from Clyde.
CODC utilities manager Peter Greenwood had told the hearing he had looked for an alternative site.
None would be as suitable as the Muttontown Rd site, as the land had the right amount of fall, no houses were within 150m of it, it was owned by council, and it was close to the river, should that be required for the discharge of treated effluent.
He said options such as pumping the effluent to Alexandra's treatment station had been considered.
That would involve 9km of piping, and Clyde people would have to pay for part of the treatment station.
There had been strong opposition to the redesignation by neighbours.
The concerns of some had been eased by conditions in the commissioner's decision.
