More than 60 new homes have been approved as part of an affordable housing development in Arrowtown.
The Queenstown Lakes District Council voted unanimously to transfer its land for a 65-unit development.
The Queenstown Lakes Community Housing Trust requested the land to build affordable rentals, senior housing and homes of one to four bedrooms.
District mayor Jim Boult said the proposal transformed land beside decommissioned sewage ponds into an affordable housing area, and helped address local housing problems.
The local government minister will need to sign off plans to allocate the land from public utility to housing.
Arrowtown has one of the highest median property values in the country - more than $1.3 million, according to QV.