Jacks Point residents and landowners are bound by covenants preventing them from legally objecting to future development in the area.
But whether the covenants will be implemented in relation to the subdivision of the adjacent Hanley Downs site will require "further discussion'', Jacks Point Residents Society chairman Mike Coburn says.
That was because of changes in ownership of the Hanley Downs land, and changes in requirements for developers.
Australian company RCL Group wants to develop about 1750 sections at Hanley Downs, a 561ha site north of the exclusive Jacks Point settlement.
Last week Queenstown Lakes District councillors accepted the recommendation of independent commissioners that a plan change allow higher-density housing on the land than originally provided for in the Jacks Point Resort Zone.
The plan change will now be formally notified and subject to a resource consent hearing.
Jacks Point homeowners Alexander and Jayne Schrantz objected to parts of the plan change.
Mr Coburn said although the covenants were common, the need to implement them was "rare''.
"It's quite clear in the covenant ... when you purchase at Jacks Point: you can't object to what the developer may want to do.
"It's probably an area that others want to explore but it's the reality.''
