The Otago Daily Times understands staff were told yesterday afternoon in a meeting and were shocked by the news.
He is believed to have received a payout.
Queenstown Lakes District Council chief executive Adam Feeley declined to confirm the departure when contacted yesterday, saying the information was not public.
In a statement released today, he confirmed the resignation and said the council was grateful for Mr Dobbie's contribution.
‘With Hamish's departure, the priority is to ensure that there is a very quick and smooth transition," Mr Feely said.
"In discussion with the Board, we will be able to confirm the details of those arrangements very shortly, including the appointment of an interim Chief Executive to work with QLDC on the transition."
An organisational review resulted in the council resolving late last month to disestablish its council-controlled organisations Lakes Environmental and Lakes Leisure.
It was expected most staff would transfer to the council.
A draft consultation report of the review given to council staff has revealed recommended redundancies, and staff have until next week to comment.
Mr Dobbie was appointed chief executive of Lakes Environmental in 2007. Previously, he was national manager of contestable services and acting commercial development manager with Asure NZ Ltd in Christchurch.
According to the review, his remuneration in the 2011-12 year was in the $260,000 to $280,000 band, and the organisation's income was about $7 million.
Mr Dobbie and Queenstown Lakes Mayor Vanessa van Uden could not be reached for comment last night.
