A section on the corner of Tenby and Conner Sts in Wanaka has been designated as a works depot by the Queenstown Lakes District Council.
Independent commissioner David Clarke granted the designation in a decision dated July 16, after a hearing on June 16.
The section was decommissioned as a works site in the 1990s and fell into disrepair.
Some neighbours opposed the notice of requirement because of industrial-type activities to take place there.
Mr Clarke said only a small horticultural crew doing light maintenance would be based there.
The site would neither disrupt the neighbourhood nor significantly affect pedestrians.
Conditions were imposed on traffic, noise, hours of operation, and other matters.