Harvesting of 4ha of the Ben Lomond Forest has begun, with another section of Douglas fir to be eventually replaced with native beech and non-spreading exotic trees.
The area of trees to be removed is about the same size as that cleared in 2008.
Queenstown Lakes District Council district forester Briana Pringle said there was an opportunity to "sustainably harvest the trees" to generate revenue for the management of the district's parks, reserves and wilding conifer control.
The Ben Lomond Forest, in particular, contained some of the fastest-growing Douglas firs in New Zealand, she said.
They are being clear-felled from the ground by a three to four-man crew with two diggers and a bulldozer, with all logs to go to local sawmills or be exported.
The area will be replanted "most likely" in a third each of red beech, mountain beech and Californian redwoods next winter and spring.
Harvesting is being carried out under current resource consent. However, the QLDC earlier this year applied for a designation which would allow it to log more than 164ha at Ben Lomond Forest, more than 413ha at Queenstown Hill Forest and more than 70ha at Coronet Forest.
Ben Lomond and Queenstown Hill have both previously been logged, and Ms Pringle said the designation would make for "a more sustainable forestry operation", avoiding the need for resource consents costing up to $10,000.
The proposal has been to hearing and is being processed.
Neutral and opposing submitters included the Arrowtown Village Association, the Department of Conservation, Kiwi Birdlife Park, the New Zealand Historic Places Trust, Wakatipu High School and the Otago Regional Council, with support from Skyline Gondola and Ziptrek.
Walkers have been asked to use the Tiki Trail or One Mile Track to the Mid Way Clearing, with access for bikers from the Wynyard Bike Park.
