A 7ha area of land along Cemetery Rd in Cromwell was sold by the Central Otago District Council about two years ago and announced in March 2016 as workers' accommodation.
Council chief executive Sanchia Jacobs and Cromwell Community Board chair Neil Gillespie said in a joint statement that the complex's first building would have 74 rooms.
The developer planned three buildings in total, with the complex housing about 900 people.
Initial plans for the first group of buildings were for 58 rooms with 400 beds in total but this had to change, the statement said.
''Because of further market research through the design process [we] recognised a need, and increasing demand, for different types of worker accommodation.''
In October last year the complex plan changed to allow six accommodation buildings with 40 rooms in total.
It changed again because of the change from ablution blocks to ensuites, Mr Gillespie said.
Mr Gillespie could not estimate a number of people in the complex now, as he said tenants could set up the number of beds themselves.
Building consent applications for the project had been lodged and were following the process before more work could begin.
The joint statement said developers had to meet certain ''performance provisions'', or the contract would be cancelled.
Mr Gillespie said these were in place as the council wanted the developer to follow through on what had been promised.
The provisions had been refined and extended several times.
Floor slabs and tilt slab walls had to be done within six months of building consent, and the building would have to be complete within two years and operate as worker accommodation for two years after that, otherwise penalties would incur.
