The camp - billed as New Zealand's greenest - will be the first phase of the Glenorchy Marketplace project, planned by United States philanthropists Paul and Debbi Brainerd.
The couple gained consent for the camping ground, for up to 140 guests in cabins, tents and camper van sites on a 3ha site next to conservation land in the town, but that was appealed by a Glenorchy resident.
The appeal, lodged by Nikki Gladding, was to have been heard by Judge Jon Jackson in the Environment Court at Queenstown on Wednesday, but a proposal to resolve the issues - relating to a ''beautification strip'' and the setback of cabins - was mooted by the couple's lawyer, Mike Holm.
Judge Jackson gave the parties until 5pm yesterday to agree, or otherwise, on amended landscape and master concept plans.
Last night, Glenorchy Marketplace general manager Steve Hewland said agreement had been reached between the couple and Ms Gladding, clearing the way for ''construction to begin immediately''.
Camp Glenorchy was planned to open early in 2017, with all profits from it and the Glenorchy Marketplace project flowing to an independent community trust, directed by local residents, to support community projects, Mr Hewland said.
