The future of the 650m pathway has been a contentious issue for almost four years, hundreds of signatures being collected on a petition at one point calling for it to be retained.
A concept design for stage two of the lakefront development along Ardmore St between McDougall St and the CBD was approved by the Wanaka Community Board on Thursday.
It showed the pathway being recreated alongside a new "active travel promenade" for cyclists and pedestrians.
The pathway was a community project which consists of a series of tiles displaying important dates in history over 2000 years.
One of the tasks of a new working party will be to review the pathway’s historical, grammatical and spelling accuracy.
It will also add more events including those from Maori history.
Moving the existing tiles was found to be too difficult.
Community board member Quentin Smith said he was "neutral" on the millennium pathway but was pleased to get some resolution.
Other features of the lakefront are gardens and a line of car parks broken up by viewing corridors.
Board member Ed Taylor noted camper vans would not be allowed to use the parks on the lakeside of Ardmore St, to avoid a "white wall" effect.
Camper vans will be permitted to parallel park on the other side of Ardmore St.
Stage one of the five-stage lakefront development has been completed and stage three is under way.
The total cost could run to more than $13million.
