One local developer said it would be most welcome in his development, just down the road.
The fast-food giant was planning a 445sq m restaurant near the entrance to the town.
In a decision released yesterday, commissioners declined consent for the restaurant as currently proposed.
They said adverse effects on the environment would be more than minor on the approach to Wānaka, as well as on the landscape character and the visual amenity values of Mt Iron.
It was originally going to be open 24 hours a day, seven days a week but this was changed during the hearing to 6am-11pm and its logo sign was also reduced in size.
The application attracted more than 350 submitters, 90% against the proposal.
At the hearing, much of the debate centred on the location of the restaurant, with many submitters arguing it was in a rural area.
Yesterday, as submitters who opposed the restaurant rejoiced, McDonald’s said it had not given up yet.
In a statement, McDonald’s communications manager Simon Kenny said it was reviewing the decision and considering its next steps.
"Our intention remains to open a restaurant in Wānaka, navigating some of the local commercial interests at play."
He could not confirm whether McDonald’s was considering appealing yesterday’s decision or was looking at another location for the restaurant.
During the hearing, held in late November last year, the possibility of relocating McDonald’s to Wānaka’s Three Parks development was discussed.
One of the main opposing submitters was the developer of WillowRidge, which owns and operates the Three Parks development.
Willowridge director Allan Dippie said he was not surprised by the decision to decline it.
"I think it was always going to be declined because it’s in the rural zone. It’s probably not McDonald’s that’s getting declined, it’s the location."
McDonald’s legal counsel, Jeremy Brabant, had previously accused Willowridge of being "distasteful" after saying they had sent McDonald’s an email suggesting Three Parks was an alternative option for the restaurant.
Mr Dippie commented on the possibility of McDonald’s relocating to Three Parks, saying the restaurant would not face any zoning issues in the growing development.
"Obviously Three Parks has the right design, but we’re not running McDonald’s so it’s up to them" he said.
He also said that no matter what McDonald’s decided to do, most people in Wānaka would be happy not to have McDonald’s in the town’s entrance.
Freshlink Grocery owner Jesse Herbert, who strongly opposed the submission, echoed Mr Dippie’s positive reaction.
"I’m over the moon. My submission was around the kaupapa, preserving it and trying to keep that from getting degraded for our visitors and residents."
Mr Herbert had said during the hearing that although he would not personally want to see a McDonald’s in Wānaka, his main concern was a location that he and many others consider a town attraction.
"It just seems like someone in McDonald’s head office made a strategic error and got greedy and pushed for that spot."
When it came to the idea of having a McDonald’s elsewhere, Mr Herbert said he "had not thought past this situation" and was simply unsure what the future would be for the restaurant in Wānaka.
The decision was referenced in Parliament yesterday, when Infrastructure Minister Chris Bishop cited it as an example of a negative approach to economic growth.
"I’m in favour of growth except — except, except, except. That’s been the story for 30 years ... I’m in favour of growth as long as we don’t build any McDonald’s in Wānaka, which is the latest thing, today."
