Judge John Hassan has disallowed the appeal by Save Wanaka Lake Front Reserve Inc against the decision last year to grant resource consent for the 420sq m Wanaka Watersports Facility, to be built on the edge of Lake Wanaka in the Roys Bay Recreation Reserve.
Most of the opposition to the facility was centred around its location near Stoney Creek, in Roys Bay, an area classified as an outstanding natural landscape.
A week-long Environment Court hearing on the appeal was held in March.
It is almost a year since the resource consent was granted by commissioners Robert Nixon and David Clarke despite more than 700 submissions against it.
Queenstown Lakes District Council planner Sarah Picard had recommended the application be refused.
Unlike a resource consent, an Environment Court decision can be appealed only on errors in findings of law, not on any finding of fact.
Wanaka Watersports Facility Trust deputy chairman Mick Hollyer said the trust had not yet looked at the decision in detail, but was delighted with it.
It was a crucial first step in what would be a long process, Mr Hollyer said.
''We've still got to get the funding in place and find the contractors. This isn't just going to happen overnight, but we're ready to get on with it.''
He would not say how much the trust had spent on the resource process, but said a substantial amount of time and money had been invested to get to this point.
''We want to be positive and focus on moving ahead now and there has been a lot of money and time spent on this by both sides, but for us it's time to look ahead.''
Earlier this year, trust chairman Michael Sidey said almost $400,000 would be spent on the resource consent process.
Mr Hollyer acknowledged there would be many in the community not happy about the decision.
''There's also two sides to everything and we don't want to belittle the other side of the argument, who obviously have a different feeling towards this.''
Save Wanaka Lake Front Reserve Inc declined to comment last night but said it would be releasing a statement in the coming days.
It had also spent a substantial amount of money on the appeal process and had asked for donations from supporters.
There were 39 conditions set as part of the decision and both sides can still make submissions on those.
The facility will provide storage and facilities for non-motorised watersports on a part of the lake popular with rowers, swimmers, triathletes and multisport athletes, stand-up paddleboarders and kayakers.
Members of the public will be able to use it for a fee, and a public toilet facility and outdoor shower will be available.
