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Mt Cardrona Station director Chris Morton is one of two submitters opposed to Zescent Group Ltd being granted resource consent by the Queenstown Lakes District Council.
Mr Morton said in his written submission he was not satisfied there were adequate controls over ''smell and odour emanating from the proposed operation''.
''This could severely affect the proposed development of up to 1000 residential units within the Mt Cardrona Station zone on my land.''
Mr Morton was also concerned the distillery development might negatively affect an easement for a pipeline running to a consented wastewater treatment plant.
''My submission would be met by [the council] refusing the application until these issues have been addressed satisfactorily.''
Wanaka woman Desiree Reid last month announced her plans to build a distillery opposite the entrance to the Cardrona Alpine Resort, and said that she hoped it would open by December.
The complex would consist of a 264sq m distillery with two floors of fermenters and stills, a grain silo and cooling tower, a 200sq m bond store for the finished product, and a 252sq m museum, shop and tasting room.
Ms Reid also intends making fruit liqueurs and perfumes from roses.
The Upper Clutha Environmental Society was the other submitter opposed to the development.
President Julian Haworth said there was ''considerable merit'' in a new, interesting business, but he considered the complex was in an ''obstructive location'', would have a significant adverse effect on the ''naturalness'' of the area and would set a precedent.
He suggested the complex be built on the lower terrace of the 71ha site and be screened with native planting.
The Southern District Health Board was concerned at the risk to drinking water by the proposed on-site sewage treatment system.
Health protection officer Kimberlee McMeeking recommended the council require the complex to be connected to a reticulation system planned to take the valley's sewage to Wanaka's treatment plant.
She also recommended the company register its proposed Clay Black Creek water supply.
Those in the Cardrona Valley supporting the development believed it would be good for the economy.
Barrie Morgan said associated rose and barley crops would enhance the valley's beauty, Mary Lee believed the complex would fit well and John Lee thought it would create growth.
Dr Dennis Pezaro, of Wanaka, said: ''With the accent on finer quality of spirits, it is unlikely to contribute to alcohol-induced road traffic problems, although host responsibility will need to be thorough.''
A date has yet to be set for a hearing.