Queenstown Lakes District councillors have given the green light to the biggest subdivision in Wanaka's history.
The 1400-lot Northlake Subdivision will increase the South Island town's size by 50 percent.
There was vocal opposition to the plan, with some residents saying it will destroy Wanaka's quaint lifestyle.
Neil Webster, who lives close to where the houses will be built, says the town's infrastructure will not be able to cope with so many people and houses and district councillors have ignored what those living in Wanaka want.
The developers, Queenstown couple Chris and Micheala Meehan, have never publicly spoken about their plans and are refusing all media interviews.
Neil Webster, who lives near the site, says the town's infrastructure - including roading and sewerage will not cope with so many people.
Wanaka resident Jan Paulson says they will appeal against the decision and force the matter into the Environment Court.