The New Zealand Transport Agency is seeking approval to upgrade the intersection and about 600m of the main road.
The changes would include raising the height of SH6 by about 3m near the intersection and lowering the crest curve south of the intersection by the same amount so motorists would have about 220m of visibility when travelling at 90kmh.
NZTA said the works would provide a safer driving environment for road users.
Council planner Aaron Burt recommended the alterations be allowed and did not recommend any conditions.
The application, publicly notified on February 4, attracted five submissions.
F. S. Mee Development Company Ltd objected, saying there was no agreement with NZTA, and objected to the inclusion of the company's land in the proposed designation. The company also considered NZTA and the Queenstown Lakes District Council had no jurisdiction to consider the application.
At the hearing, counsel for NZTA, Catherine Hewitt, said NZTA did not have to own the land under the Resource Management Act.
The remaining four submissions were all in support of the proposal.
The commissioners reserved their decision.
