The owner of 215ha Paddock Bay Farm, Apres Demain Ltd, a company owned by Hermine Yuki Mauvernay, of Queenstown, had applied for resource consent to create a one-lot subdivision and build the 513sqm house and separate worker accommodation.
Independent commissioners for the Queenstown Lakes District Council Jan Caunter and Jane Sinclair granted the subdivision and worker accommodation but not the house.
They considered the adverse effects of the house could not be ``appropriately avoided, remedied or mitigated''.
The house was to be located on a lakeshore bench with views over Lake Wanaka towards the Mt Aspiring National Park.
While the commissioners noted significant planting mitigation was proposed to ``almost entirely'' screen the house from view, they accepted the evidence of landscape architect Ralf Kruger that the house would be located on an exposed, open and ``broadly visible'' slope.
Apres Demain Ltd was given Overseas Investment Office approval in 2016 to buy the $8million farm.
