In late February, the Central Otago District Council announced that a district plan change paving the way for a subdivision on the site of the Wooing Tree vineyard had been approved.
Twenty-six residents who live in the Lakefield Estate subdivision, directly north of the vineyard, lodged an appeal to the court on Tuesday.
Bill Dunbar spoke on behalf of the residents.
The Otago Daily Times spoke to Mr Dunbar in March after the council released the decision.
Back then, Mr Dunbar said residents were considering an appeal to the Environment Court but it would involve a "considerable cost", which he was unsure the neighbourhood could pay.
But he said the community support the neighbourhood received changed that.
"We’ve had amazing support from the general population of Cromwell, both financial and verbal ... people outside the neighbourhood have not liked the concept at all and have given us a lot of support."
Mr Dunbar said the entrance to Cromwell was not the place for a dense residential subdivision.
He said the density was contrary to the district plan, which said dense residential development would be south and not north of State Highway 8B.
He also said that in 2016, Wooing Tree put a proposal to the Lakefield Estate residents that looked "really good".
"What they’ve come up with finally is totally different from that," he said.
He also thought it was the wrong place for another retail area.
"To suggest that we should have another retail area ... when it’s a five-minute walk to the Cromwell mall, that beggars belief."
The Environment Court website says the next step after lodging a plan appeal is mediation, when an environment commissioner meets both parties to encourage them to settle their dispute outside court.
If an agreement is not reached in mediation, a hearing will be held and the court will make a decision.
Parties can appeal to the High Court if they do not agree with the Environment Court’s decision.
