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Queenstown Lakes District Council electoral officer Jane Robertson said last year the council conducted a representation review, which councils were required to do every six years.
It found the Arrowtown ward would not comply with the Local Electoral Act 2001, which stated a ward's councillor-to-resident ratio did not differ from that of the wider district by more than 10%.
The council then sought to reduce the non-compliance by altering the boundaries of the ward to increase its population. However, the ratio was still non-compliant at -12.74%.
The decision was then referred to the Local Government Commission.
Ms Robertson said the council was advised on April 4 the ward would be retained and one councillor would be elected to it during the 2019 elections, being held on October 12.
The extended Arrowtown ward boundary would take in McDonnell Rd to State Highway 6 and Millbrook Resort.
New maps of ward boundaries would be available before this year's elections, during which six councillors would be elected from the Queenstown/Wakatipu ward and three from the Wanaka ward.
Nominations open on July 19 and close on August 16 at noon.