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The appeal was lodged in February this year by River Terrace Developments, owned by Chris Meehan’s Winton Group.
It related to a Central Otago District Council decision to decline plan change 13, which would have allowed the development to go ahead.
Central Otago District Council chief executive Sanchia Jacobs said she was notified that the case had been withdrawn about 1pm today.
"That’s the end of plan change 13 - but that doesn’t preclude River Terrace Developments from making further applications relating to the land.''
The plan change would have led to almost 50ha of land being rezoned for intensive development, including 840 residential sections opposite Highlands Motorsport Park on Sandflat Rd.