Earlier this year, the Queenstown Lakes District Council adopted a proposed long-term solution to Cardrona Valley's wastewater issues that would have seen wastewater piped from Cardrona Valley to the Wanaka wastewater pipeline and on to the Project Pure treatment plant near Wanaka Airport.
In the past, there have been several norovirus problems caused by wastewater and drinking water systems in the valley.
Alternative solutions to the issue would now be investigated.
In his report to councillors, chief executive Mike Theelen said that after detailed examination of the pipeline proposal, serious doubts were raised about its feasibility and cost-effectiveness.
As a result, work on the proposal had been stopped.
Council staff would revisit the business case process to identify an alternative option, which would be reconsidered by the community and council next year, he said.
In the short term, the council had taken over the existing wastewater treatment plant
Cardrona Valley Residents and Ratepayers Society chairman Blyth Adams said when contacted by the Otago Daily Times yesterday he had not been made aware of the council's decision. .
It was always expected the logistics of a pipeline would cause issues but the community believed the decision to build it was the correct one, Mr Blyth said.
''At the same time, we understand there is only so much pie to go around and everyone has their hands up for a slice.''
While the council had fixed the wastewater issue in the short term with upgrades to the existing infrastructure, something needed to be done about the long-term issue or there could be serious consequences, he said.
''We haven't had anything like the issue they had in Havelock North, thank our lucky stars, but if something's not done we could be looking at something very similar.''
Mr Blyth thought there was a lack of investment in the Cardrona area by the council that would need to be remedied as the population in the area was expected to grow.
''In the past 14 years we have had a gravel path, about 20 trees and some road improvements which were taken out not long after they were put in - so you could say it was time for some more investment in the area.''