Lobby group Protect Queenstown has lodged an appeal to the Environment Court against the $300 million Shotover Country development.
The group of about 15 concerned Wakatipu and Arrowtown residents has this week applied to attach themselves to an existing party and will oppose the Shotover Country developers if they are granted their application.
Queenstown Airport Corporation and Arith Holdings Ltd withdrew from proceedings last month, leading Protect Queenstown's Sheena Haywood to apply to take over the Arith Holdings Ltd appeal.
"It's game-on now. I have looked long and hard at doing this and thought I care too much not to," she said.
The Queenstown Lakes District Council has been in negotiations with both QAC and the developers regarding airport noise and zoning rules respectively - though details of negotiations have not yet been released.
Ladies Mile Ltd was still appealing the council's decision to disallow development of a further 150 residential sections on "flood-affected land" within the proposed development.
The purpose of the group is to appeal the council's decision to allow the 750-lot development to go ahead, Ms Haywood said.
The council adopted a plan change in November allowing 120ha of land 10km northeast of Queenstown, between the Shotover River and Lake Hayes Estate, to be developed for housing and small-scale retail activity.
Ms Haywood who lives next to the proposed development, had been a party to appeals by the Queenstown Airport Corporation (QAC), Arith Holdings and Shotover Country developers Ladies Mile Ltd since proceedings began in March last year.
Her group's main concern was that population of the valley could cause sewerage, roading and environmental issues.
"This ... is not in our district plan.
"They wouldn't let them extend Arrowtown and that is a place that already has the infrastructure to do it."
The group had applied to be an incorporated society meaning they could apply for funding for what was expected to be a drawn-out court hearing.
Others in the Protect Queenstown Group were Duncan Field, Helen Steven (both of Queenstown), Amanda Elliot, Tracey Galbraith and Steve Henry.
Protect Queenstown lawyer Kristy Rusher said the next step was waiting for the court to issue a timetable, including a hearing date.