The Wakatipu Basin Land Use Planning Study was commissioned last year by the Queenstown Lakes District Council after the proposed district plan hearing panel raised concerns the planning rules could not protect the basin's character.
The study was prepared by Auckland-based planning consultant Barry Kaye Associates Ltd, Bridget Gilbert Landscape Architecture and Straightedge.
It suggests replacing current zoning with a scheme based on the landscape's ability to absorb new development.
Recommendations include developing a series of precincts in the basin with their own development frameworks, with capacity for up to 10,000 new houses.
Council staff will review the study and report back after councillors voted to note it at a full meeting of the council in Lake Hawea last week.
The study was not official council policy and if adopted would have to go through a public consultation and hearing process.
At the meeting, Arrowtown ward councillor Scott Stevens said the study had sent the basin's residents into a ``tailspin''. It had major errors, particularly on where urban development was suitable, he said.
``No consideration has been given to Arrowtown's urban growth boundary and in my opinion they have severely missed the mark on other conclusions, including where urban development has capacity to be absorbed.''
People were concerned about what any changes would mean to their community but also the amenity value of the properties, Cr Stevens said.
Cr Penny Clark was also concerned the study had described the basin as non-rural, as there were still family-run farms in the area.
``I know some of those farmers are concerned about what will happen to the area if this is adopted.''
Mayor Jim Boult said he also knew of people concerned by the study but believed it was comprehensive and well developed.
He asked the council's general manager planning and development, Tony Avery, why the council would not ask for public submissions on the study. Mr Avery said people had already made their views known through submissions to the district plan review and the council needed to be careful it did not start an informal consultation process.
