A flying fox is being built at Bob's Peak above Queenstown despite a legal challenge to its resource consent.
Skyline Enterprises, owner of the gondola, luge and restaurant, lodged an application in the High Court for a review of a decision to allow Ziptrek Ecotours to operate a flying fox guided eco-tour on Bob's Peak.
The Queenstown Lakes District Council granted Ziptrek resource consent in February 2008 after a non-notified application process.
Skyline Enterprises, which operates its gondola ventures from the hilltop, maintained there was a conflict over use of the land, particularly with the changed zipline (flying fox) locations, and subsequently made an application to expand its own use of the reserve.
It lodged an application in the High Court at Invercargill in December last year for a judicial review of the council's decision to not publicly notify the application.
The review was heard on Monday by Justice Christine French, who reserved her decision.
Ziptrek Ecotours Queenstown director Trent Yeo said he could not comment on a case before the courts, but did say his legal team had advised him to "get on with work".
He confirmed construction had begun on the flying fox in August.
"We're hoping to be open for summer, but we have no date yet.
We are excited about getting on with the project," he said.
Skyline Enterprises' legal counsel Richard Fowler said Skyline wanted the resource consent quashed and a new application to be publicly notified.
He said Skyline could not stop Ziptrek from starting construction work on the flying fox.