Contact Energy's decision to drop its hydro development plans for the Clutha River has come as no surprise to local government leaders in the district.
Clutha Mayor Bryan Cadogan had been "semi-aware" of Contact's intentions for some time.
He said the prospect of dams on the Clutha River had "polarised the community", and it was good to have some closure on a long period of uncertainty.
"I suppose if nothing else it gives certainty now for the future because for so long we've been saying 'Imagine if the dam happened' ... It's better to be dealing with the facts and move on with reality ... so onwards and upwards."
Mr Cadogan said there would never have been a "ready acceptance" of hydro development from the community if the project had proceeded.
"To have development in the district is something that we're always looking for, but it's got to be the right development and it's got to have community support."
The news Contact had cancelled its dam plans was not unexpected for Central Otago Mayor Tony Lepper, either.
"Only because I thought they were expensive power projects to go through with and obviously they've come to the same conclusion," he said.
"It's probably disappointing to miss out on the economic benefits, but I'm sure there's other economic benefits to come out of that river and we'll just have to make the most of those."
Mr Lepper said on a personal level, he was "rapt" there would be no dam proceeding at Luggate, where he regularly kayaked.
"I think that's one of the nicest stretches of river in New Zealand and I play on it all the time.
"I'm very pleased that it's going to be around for a bit longer."
Queenstown Lakes deputy mayor Lyal Cocks said the decision was "appropriate", based on information Contact had provided throughout the process and the division the dam proposals had caused within the district's communities.
"It's been an issue that we've been on the edge of for a while watching the progress ... I think it's an appropriate decision looking at the way the numbers stack up as they've [Contact] indicated to us."
He said there were other options for power generation that were more feasible.
