In April, the Environment Court approved a plan change for the Mackenzie Basin that gives Mackenzie District Council more control over development in the basin.
The council was concerned about fragmented growth.
Federated Farmers this week dropped its appeal, saying it was confident after discussions with the council it was in a position where they could work together.
Federated Farmers' high country executive member Andrew Simpson said it also needed clarification on existing use rights, but now had that and was looking forward to having an ongoing, positive working relationship with the council.
The remaining appellant is The Wolds Station Ltd.
Bronwen Murray, of The Wolds Station, confirmed its appeal was still on the table, and was scheduled to be heard in August. She declined to comment on details of the appeal.
Mackenzie Mayor Graham Smith called Federated Farmers' decision to withdraw its appeal ''great news''.
While disappointed the court process would continue, it was The Wolds Station's right to continue its case, he said.
The legal battle had so far cost the council more than $1million and had been a ''lesson'' for the council.
''It's been a gravy train for solicitors.
''It's been up and down, all over the place for 10 years. Every time a decision has been made it had been more restrictive for farmers.
''To be fair there's been no real winners.''
Mackenzie Guardians spokeswoman Rosalie Snoyink said her group was pleased a conclusion for the process was almost in sight.
''It's urgent to get Plan Change 13 operative. It's been 10 years in the process. A further court date would delay that decision.''
The group would maintain an active interest in any development that might impact the outstanding natural landscape of the basin.
Forest and Bird Canterbury West Coast regional manager Jen Miller said Plan Change 13 was recognition by the council that its current plan was not fit for purpose.
The ongoing fight was proving costly for ratepayers and the environment, she said.
Environment Court judge Jon Jackson said in his report there was quite a strong ecological and economic case for an immediate moratorium by the Commissioner of Crown Lands (CCL) on further freeholding of any land in the Mackenzie Basin containing ''outwash gravels''.
