The council has also applied to the Public Trust to manage the property on behalf of the last known land owner, a long-dead Chinese man Wah Yeong, who was most likely a 19th-century goldminer.
The fence owner, Andre Prassinos of Lincoln, yesterday responded by accusing the council of "violating human rights" and threatened legal action against those who touched the fence.
The fence was erected around the two prime sections just over a week ago by Mr Prassinos, a US-born former Wanaka resident who is now a Lincoln University student, and Queenstown lawyer Greg Stewart.
They also put up a sign stating "Private property; for lease; no trespassing" and giving Mr Stewart's contact phone number.
Wah Yeong's descendants have not been traced, there are no registered owners, no-one has paid rates for a very long time and some of the land is used as a public carpark.
The QLDC does not have a record of the land value, but at a combined area of about 900sq m and central village location, the sections would be worth several hundred thousand dollars.
Cardrona Residents and Ratepayers Association chairman John Scurr said about a month ago the community had asked for support from the council in obtaining benefits from various blocks of abandoned land.
Mr Prassinos had been at that meeting and no-one could understand why he had subsequently claimed the land for himself, Mr Scurr said.
"I would like to remind you this guy has been on Neighbours From Hell (a TV programme) over the way he treated a respected Wanaka citizen who was confined to a wheelchair.
Also, he was the guy who saw the demise of our iconic bra fence at a cost to all the ratepayers through the legal process, in the face of it becoming a (high-profile) fund-raiser for breast cancer," Mr Scurr said.
When asked yesterday why he put the fence up, Mr Prassinos said he did it because he did not trust the council to do quality town planning.
His Cardrona investments were suffering because of inconsistent outcomes and the town's potential had been overlooked, he said.
"It cannot be said we are merely grabbing at a piece of land randomly . . . I have not gone round the district speculating on ancient titles," Mr Prassinos said.
Other people had also claimed ancient titles, and they also had a vested interest in town planning, he said.
Mr Stewart said the claim was private business and not related to his work as a lawyer for Stamers Smith, he said.
"I'm not doing this to be difficult or stand on anybody's toes. I am just doing what is lawful," Mr Stewart said.
Mr Prassinos was shocked when told by the ODT the council had relocated the fence yesterday morning and said the council needed to "pull its ear in".
He said he would consult his lawyer about possible police and civil actions.
"It appears they [the council] are not above violating human rights to do what they want," he said.
QLDC chief executive Duncan Field said Mr Prassinos should not have been surprised the fence had been moved because council lawyers had written twice to Mr Prassinos' lawyer about it.
The reason he instructed his staff to move the fence was because it was on a car park designated as a public road.
Claimants taking adverse possession had to go through a complicated process to become the registered owner, including paying rates, 20-year occupation and showing effective use of the land.
No rates had been paid and Mr Prassinos's other actions would not satisfy the legal tests, Mr Field said.
"Yes, they [Mr Prassinos and Mr Stewart] are entitled to do what they are doing. But everyone else is entitled to say this is inappropriate . . .
"It is a very underhand way this has been seized. It is astounding. I don't think there is a precedent in New Zealand," Mr Field said.
Requesting the Public Trust to manage Wah Yeong's sections along with several other abandoned blocks meant everyone would have someone to deal with, Mr Field said.
The council has received rates for several years from former Cardrona publican Brian Gilbert on two abandoned properties formerly owned by Ah Kin and Wong You.
Mr Field confirmed the Public Trust was also asked to manage those blocks.
Deputy mayor John S. Wilson, of Wanaka, said yesterday he fully supported the Cardrona community.
Town planning initiatives were now "moving along" although he thought there had been some justification for frustration in the past five years.
"I am just surprised that people who come to live in this country alienate the local community. It seems strange," Mr Wilson said.
Claiming abandoned land
If you have been using the land for a long time, you can apply to the District Land Registrar under the adverse possession rule.
This is not an easy process and takes at least 20 years to complete.
The process includes paying rates and erecting substantial improvements.
If a council or local authority wants to take over land for public purposes (e.g roading) it can use the Public Works Act.
This is also a lengthy exercise.
Anyone, including councils, can apply to the Public Trust to manage abandoned land.
The Public Trust will conduct a full investigation of the owners and attempt to trace descendants.
If the owner or descendants cannot be traced, the Public Trust manages the land on behalf of the absent owner.
It can sell the property but any sale of land worth more than $40,000 needs High Court approval.
The sale must be at market value.
The Public Trust can also lease the land.
The proceeds are held in trust for the owner or descendants.
After another 20 years, the unclaimed money goes to the Crown's consolidated fund, where it is continued to be held in trust for the owner or descendants.
Public Trust lawyer Richard Calvert advises anyone intending to claim under adverse possession of the Public Trust Act to consult their lawyer.
Websites:www.treasury.govt.nzwww.linz.govt.nz www.publictrust.co.nz