Wanaka police sub-area commander Senior Sergeant Allan Grindell said the matter had been due to go to an Environment Court pre-hearing conference yesterday, but the issues raised by MacPherson St property owner Roger Boyd had been successfully resolved.
The appeal was lodged in July after the Queenstown Lakes District Council approved a notice of requirement in May for the designation of 2130sq m of reserve land in Ballantyne Rd, next to the Department of Conservation, for police purposes.
The application said the existing station in Helwick St was no longer big enough.
In his appeal, Mr Boyd said there was "no convincing case" why a new police station was needed and adequate consideration had not been given to alternative sites.
Development on the site - which could eventually include a relocated Wanaka Volunteer Fire Brigade building as well - would increase traffic flows in the area and rule out one of the identified options for traffic in the Wanaka Transportation Study, he said.
Mr Boyd asked the Environment Court to cancel the notice of requirement so the police station could not proceed and the land was preserved "for the enjoyment of future generations".
Snr Sgt Grindell said now the appeal had been resolved, work would start "as soon as practicable".
The 500sq m station would be designed as a shared space for police and the community and provide accommodation for up to 18 Wanaka police staff.