The hearing, held at the Lake Wanaka Centre, followed a two-month consultation period from March 13 to May 13, during which 357 submissions were received by council on the proposed new speed limits bylaw.
Council found about 60% of submitters who responded to the survey questions relating to the bylaw were opposed to reducing the speed limit and urban traffic area reductions.
Of the 130 submissions council received from Wanaka, five submitters elected to speak in support of their submission before the hearing panel members Deputy Mayor Calum MacLeod and Councillors Scott Stevens and Craig Ferguson.
Transport consultant and Wanaka resident Mark Gordon questioned whether the council had the authority to implement a 40kmh speed limit across the district.
''I don't know of any other towns and cities in NZ that do that, but if we are going to consider it, then to me that is a national issue.''
Former deputy mayor and driving instructor Lyal Cocks said reducing the speed limit to improve road safety was an oversimplification.
''What is a safe speed? Zero?'' he asked the panel.
Mr Cocks said he believed the problem was people not driving to the conditions, particularly tradesmen, and the need for more enforcement of the current speed limits.
''Some of these tradies need their butts kicked,'' he said.
Active Transport Wanaka's Simon Telfer said he represented the large number of adults and children who rode bikes in Wanaka, including 800 members of the Bike Wanaka club.
He said the ultimate mechanism for keeping streets safe for bike riders was to have separate and protected cycle lanes.
''As a community we are advocating hard for this, but it is a long way off ... this is why a speed reduction from 50kmh to 40kmh in urban areas, and even greater reductions around schools and in the CBD, is so important.''
Mr Telfer said he could see there was an argument for keeping speeds higher on arterial roads which had a separate cycle lane, but not when the only option was to ride on the road.
''Councillors have to make a decision if lives are more important than the 13 seconds of time saved by travelling 400 metres at an extra 10kms an hour,'' he said.
The hearing concludes at the Queenstown Events Centre today.
Deputy Mayor MacLeod said the panel hoped to make a recommendation to council in the next few weeks.
