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Developers want to turn 6ha of Wanaka's Peninsula Bay land partly zoned "open space'' into 26 residential sections.
The land is owned by Infinity Group's Peninsula Village Ltd and Wanaka Bay Ltd, owned by Murray Frost, of Wanaka.
As Peninsula Bay Joint Venture, the companies have applied to the Queenstown Lakes District Council to change the district plan [plan change 51].
The closing date for public submissions is Thursday.
Planners for the joint venture, Mitchell Partnerships Ltd, note part of the site on the northern end of the Peninsula Bay subdivision is within an outstanding natural landscape.
The site includes some kanuka and "depleted tussock grassland''.
"The proposal would involve removal of up to 4850sq m of vegetation.
"The effects of the removal of this vegetation are proposed to be mitigated by approximately 1.1ha of new planting and enhancement planting.‘‘The proposal is expected to result overall in positive ecological outcome.''
The current open space boundary was established by the council in 2005, after agreement between the developers and the Wanaka Environmental Society.
The planners argue that with the development of the Peninsula Bay suburb since then, the northern part of the peninsula is "now not as vulnerable to change or development as it was''.
Their report notes the society intends opposing the plan change.
All purchasers of sections in the Peninsula Bay development signed agreements that they would not "oppose, object to, frustrate or take any action'' that might hinder the joint venture progressing the development, the report says.
In its conclusion, the report says the landscape effects of the plan change were "localised'' and "for the most part, will be visually negligible to slight''.