Approval to move Miller's Flat Church means construction of the $1.4 million Arrowtown community hall in its place next to St John's Presbyterian Church can proceed, after five years of planning.
The 150sq m hall was designed by Queenstown heritage architect Jackie Gillies to complement the 136-year-old white stone church and its surroundings.
The hall can seat 150 people in a main area and lounges and will include kitchen, office, toilets and audiovisual and data technology.
The public appeal for funds by the parish needs another $194,000 before the $1.4 million goal for the hall is reached.
About $740,000 has been assured through grants from the Central Lakes Trust, the Community Trust of Southland and the Otago-Southland Presbyterian Synod.
Donations and commitments total $386,000 and $80,000 in grant applications are in the works.
St John's Church Building Committee chairman Bruce Patton said the aim was to start building in May and to open the hall by Christmas.