The next stage in a controversial proposal to build 758 houses beside the Shotover River was reached this week with a call for public submissions.
Before the venture can proceed, the Queenstown Lakes District Council must adopt a private plan change.
The QLDC publicly notified the Shotover Country private plan change 41 on Wednesday.
A group of 10 landowners, calling themselves the Ladies Mile Partnership, lodged the plan-change application in February.
At a subsequent hearing in March, QLDC senior policy analyst Karen Page recommended it be rejected, saying with the projected growth of 500 residential or visitor dwellings per year, there was still capacity within the current zoning for another 20 years.
"There is not demand for this development," Ms Page said.
But in May, the QLDC's strategy committee disagreed, saying the project might be "one of the last chances to have reasonably affordable housing" in the district.
Ladies Mile Partnership includes landowners Terence McCashin, Beverley McCashin and Grant Stalker.
They propose to rezone about 120ha of rural general land to form a new zone, the Shotover Country special zone. The site is located to the south of the Ladies Mile Highway, and is bordered by the Shotover River, the Kawarau River and Lake Hayes Estate.
The plan change would provide for 758 residential dwellings, educational and recreational facilities, open space, walking tracks and cycleways and protection of an early settlers' cottage.
Ms Page said this week the public notice had been sent to about 600 residents in Glenda Dr, Lake Hayes and along State Highway 6.
"Following the receipt of public submissions, a summary of the submissions lodged will be prepared. This will then be publicly notified for further submissions," she said.
"After the close of further submissions, the council will appoint a hearing committee to assess the plan change and the submissions lodged to it. The committee will hold a public hearing to enable submitters to present their submissions."
After deliberation, a decision would be issued by the council. Submitters could appeal that decision to the Environment Court.
The closing date for submissions is August 20.
