Councillors are mostly positive about the controversial chief executive's legacy.
Mr Feeley broke the news in an emailed statement to council staff yesterday morning.
He thanked them for bringing about ''significant change'', especially in cutting costs, strengthening finances and improving customer service.
But his job's ''24-7 demands'' had come at the expense of his personal life and, after three years, he wanted to move into consulting and directorship roles, he said.
''I came to Queenstown Lakes to enjoy the lifestyle it offers, but unfortunately this has not eventuated.
''I am at a point in my life where I want greater flexibility to get out running in the hills and spend time with my family.''
Queenstown Lakes Mayor Vanessa van Uden said Mr Feeley would leave in late February.
The council was in better financial shape than when Mr Feeley took over, she said.
He had reshaped the council by bringing together three separate organisations and improving the delivery of core infrastructure and services.
Queenstown Chamber of Commerce chief executive Ann Lockhart did not respond to a request for comment, nor did long-time verbal sparring partner and Remarkables Park developer Alastair Porter.
Councillors were largely positive about Mr Feeley's record.
Cr Ella Lawton said the council had become more efficient, better organised and had improved its long-term planning. Although the controversy surrounding a special housing application by Mr Feeley's family trust was ''unfortunate'', he had done a ''great job'' of helping the council move forward.
Cr Simon Stamers-Smith said Mr Feeley had done a ''wonderful job'' of bringing a council that had ''19th-century systems'' into the 21st century.
Cr Mel Gazzard said it was ''hard to tell'' whether recent high turnover of senior staff was a factor in the resignation, but Mr Feeley would leave the council in much better shape. Cr Merv Aoake said the chief executive's role was high pressure, and he accepted Mr Feeley resignation reasons.
Cr Cath Gilmour did not want to comment.
Controversy has been a hallmark of Mr Feeley's career in recent years. The shake-up of the council in 2013 saw almost 30% of full-time equivalent jobs being stripped out to improve efficiency. This year there have been a string of senior staff resignations.
In May, the Auditor-general inquired into council handling of a conflict of interest over Mr Feeley's family trust's proposed Arrowtown subdivision under special housing rules.
He and the council were cleared, but the Auditor-general said the chief executive and Ms van Uden ''could have done some things better''.
During his time as the head of the Serious Fraud Office, Mr Feeley was reprimanded by then police minister Judith Collins for celebrating the charging of Bridgecorp director Rob Petricevic by opening Bridgecorp-labelled Champagne.
He was also reprimanded by the State Services Commission for using copies of the late Allan Hubbard's biography as booby prizes at a staff Christmas party.
Ms Collins was forced to resign as justice minister last year following revelations blogger Cameron Slater had written four years earlier she had been ''gunning for Feeley'' while police minister.
