Queenstown Trails Trust chief executive Mark Williams said work on the 6km section, which runs across the southern face of Coronet Peak, started in November and was about half complete.
It would form part of a track that would eventually allow bikers and trampers to travel in a loop from Arrowtown around Coronet Peak and Big Hill and back again.
The majority of the track would run across Coronet Peak Station, venturing deep into the Mahu Whenua back country protected by several QEII National Trust open space covenants.
Mr Williams said the first stage was expected to open by the end of the summer, and he hoped the full track would be completed in about 18 months' time.
''It's going to be a stunning trail.
''It's a great opportunity for our community to have access to back country that was previously unachievable.''
The first stage started from the top of the existing Bush Creek track near Arrowtown and ended at the Rude Rock car park by the Coronet Peak access road.
It partly followed a water race once used for gold-mining at Arthurs Point.
''The track is in an awesome setting and littered with historic reminders of the gold-mining era.''
The Coronet Loop was a joint project between the trust, Coronet Peak Station leaseholder Soho Property Ltd, the Department of Conservation, the Queenstown Lakes District Council and the Walking Access Commission, he said.
Work on the second and final stage was expected to start next summer. Starting at the bottom of the existing Skippers Pack Track, the track would continue over Green Gate Saddle, then run beside Deep and Eight Mile Creeks to the Macetown road.
There were plans to upgrade Green Gate Hut and build a new hut in Eight Mile Creek, which would further open up the area to walkers and bikers for overnight trips, Mr Williams said.
