The likelihood a kindergarten will be built at the Alexandra Primary School have improved considerably, although no-one is commenting officially.
It is understood the last remaining objector - lawyer Darryl Fletcher, who now lives in Tauranga - has withdrawn from mediation.
Mr Fletcher appealed a resource consent granted by the Central Otago District Council to the Environment Court.
Mediation was set down for earlier this month, but Environment Court case manager Chris Jordan said Mr Fletcher had spoken to Judge Jon Jackson and said he would be withdrawing his appeal.
However, the court had yet to receive documentation or a memorandum to that effect, and until it had, the court would continue to proceed with receiving evidence for an appeal, Mr Jordan said.
Central Otago Kindergarten manager Angela Jacobsen said she could not comment because she had received no written confirmation the kindergarten would go ahead.
Council team leader Ann Rodgers said more information was expected next week which she hoped would clarify the situation.
In the meantime, the appeal was "still live".
A new facility is wanted because the kindergarten has outgrown its 1950s building, which is also in need of some major repairs.
The placement of the kindergarten in the school grounds requires that three large trees be removed and that had concerned some people.
Kindergarten representatives had said in their evidence new trees would be planted and the location of the building was important to maximise sun and natural light.
Parking and access to the area were also concerns raised by submitters.
The new building would be funded by the Central Lakes Trust, the Community Trust of Otago, fund-raising, and monies raised from the sale of the present building.
