The land is at the northern end of the Peninsula Bay subdivision overlooking Lake Wanaka near the outlet of the Clutha River and is covered with kanuka, with some walking a biking tracks.
The Queenstown Lakes District Council announced today it was seeking the public's view on what uses might be made of the new recreational reserve.
The land was previously owned by Infinity Investment Group, which developed Peninsula Bay.
Bike Wanaka has put a proposal to the council to use it for mountain bike tracks suitable for beginners.
The organisation in its proposal said the area "provides outstanding views over the lake and great opportunities to ride through open grass spaces interlinked with trails through natural kanuka stands''.
It points out other mountain biking tracks in Wanaka are either too "steep and arduous'' or too flat and busy with other users.
It gives the Scurr Heights track as an example of a multi-use track shared with walkers and runners, and "dogs can lead to dangerous encounters between fast riders and other users''.
Bike Wanaka proposes two 1.4km loop tracks starting and finishing at the Infinity Drive trailhead, and a ``skills development area''.
It estimates the cost being about $42,000, which it would raise from various trusts and funds.
A separate proposal by Disc Golf Wanaka has been put to the council for an 18-hole disc golf course on the land.
The group believes it can "co-exist amicably'' with hikers, dog walkers and mountain bikers.
It suggests the cost to the council would be $35,000.
The council is seeking feedback on the two proposals, and suggestions for other uses.
Consultation closes on September 28.
