Mr Dippie's company, Beech Cottage Trustees Ltd, has applied for resource consent to build a 478sq m, two-level house and swimming pool and relocate a historic woolshed from Luggate on 35.1ha of land at Waterfall Creek, about 4km from Wanaka.
The site overlooks Lake Wanaka and Ruby Island and is located in an area of outstanding natural landscape (ONL).
Developments in areas of ONL need to pass a higher threshold of compliance to get resource consent.
A hearing on the resource consent application will be held at the Edgewater Resort in Wanaka tomorrow.
In her assessment of the plans, Queenstown Lakes district senior planner Sarah Gathercole recommended the application be granted.
Despite it being located in an area of outstanding natural landscape, Ms Gathercole found the location, nature and scale of the development and its impact on the landscape appropriate for the location.
Although development within areas of ONL was not encouraged, the proposed building would not result in inappropriate character, landscape and amenity effects and therefore the development was considered acceptable, she said.
Three submissions were made against the plan, the strongest of them coming from the Upper Clutha Environmental Society.
UCES secretary Julian Haworth said the society was opposed to the proposal because the development threshold both east and west of Waterfall Creek had already been exceeded.
Last month, independent commissioner Bob Nixon granted resource consent for Gavin and Jacquetta George to build a two-storey lodge on a 17ha property next to Mr Dippie's.
A group of neighbouring landowners have appealed the decision to the Environment Court.
In his submission, Mr Haworth said it was very likely the lodge would be approved, making a total of 12 consented buildings, both commercial and residential, in the area of outstanding natural landscape.
Views from Ruby Island, Roys Peak and Lake Wanaka, all popular with locals and tourists, would be significantly altered by the buildings, he said.
The visibility of the development from nearby public walking tracks was downplayed in the application, Mr Haworth said.
It was not the first time this month Mr Haworth will be opposing a development involving Mr Dippie.
The UCES was the sole objector to a plan by Willowridge Developments Ltd, owned by Mr Dippie, to subdivide about 118ha of land in Kane Rd north of the Red Bridge near Luggate into 13 residential developments.
