Queenstown Lakes District Council approved resource consent for the town centre property to be used as full-time visitor accommodation once constructed.
The project by developer Quarters Group will feature 26 townhouses at 14 Reece Cres.
A website for "Reece Quarters" painted it as a brand-new development that "makes the most of Wanaka’s lifestyle in an unbeatable location".
The approved plans were for two- and three-bedroom options including off-street parking and private decks.
Consent documents said the townhouses would have a restriction of two guests per room and would require vehicles to park on site.
The site was 3172sqm and irregular in shape.
"The site’s landform comprises two terraces that step down from the northwestern boundary to the southeastern corner.
"The site is currently a construction site," the documents said.
Units would only be rented out to small groups of four to six people to ensure the amenity of the surrounding area, the consent documents said.
"Parties or large gatherings of guests and visitors are strictly prohibited."
The site had already been consented for residential use and the submitted documents noted the proposed visitor accommodation would be "similar in terms of number of persons, vehicle movements and nature of activity".
"While persons in residential visitor accommodation generally have less regular patterns of behaviour, as this zone is for business mixed use this will be virtually imperceptible and will have minimal adverse effects."
Quarters Group managing director Chris Broadhead could not be reached for comment.
