Commissioners Jane Taylor and Christine Kelly decided the subdivision proposed by Lake Hayes Estate Ltd (LHE) was "entirely consistent" with the existing 550-lot estate and the neighbouring 37-lot residential subdivision by Sardis Nominees No 2 Ltd, which Mrs Taylor and commissioner Lyal Cocks approved in April.
"We are satisfied that the proposed development will not result in any adverse effects that are potentially more than minor," the LHE decision stated.
The decision to process the application on a non-notified basis followed a one-day determination, in Queenstown, in late May.
Lakes Environmental planner Wendy Rolls recommended the subdivision and land-use consent application be publicly notified.
She identified Rere Rd residents and Transpower were potentially adversely affected parties.
Transpower owns an 11kV transmission line, east to west, above the site.
LHE counsel Jim Castiglione told the hearing the application should not be publicly notified because covenants signed by estate residents made sure everyone who bought or occupied property went in with their "eyes open".
However, Dr Royden Somerville QC was asked by correspondence by commissioners whether clause 11.2 of the covenant signed by most estate residents counted as "written approval" under the Resource Management Act.
Within the decision document released this week, Dr Somerville wrote the clause was a general provision and did not refer to the specific application for a resource consent being considered.
"In my opinion, for written approval to be meaningful under s94A(c) it must relate to what is being applied for. The section refers to the application, and a purposive interpretation suggests that a consent authority would need to know that informed approval was being given."
The commissioners concluded that Rere Rd residents would not be affected by the subdivision and they were not considered affected persons in section 94.
It would be "unreasonable" to require their written approvals.
Mrs Taylor and Ms Kelly noted LHE Ltd had volunteered conditions and advice notes to Transpower as it requested and they now formed "an integral part" of the application.
Any change would require a fresh application.
The commissioners found Transpower would no longer be adversely affected by the subdivision because of the conditions.
They concluded Sardis Nominees No 2 Ltd was the only potentially affected party and it had given its written approval.