A special housing area at Lake Hāwea has been given the thumbs up despite strong community opposition.

The Queenstown Lakes District Council yesterday voted to recommend the development go to the government for approval.

Special housing areas allow developments to be fast tracked through the resource consent process in order to boost the housing supply.

Queenstown Lakes Mayor Jim Boult said councillors recognised the community's concerns, including fears the 400-lot project was developer-led.

But he said housing affordability remained a problem for the district, and establishing a special housing area could help.

There would be restrictions on the types of stores available in the new township service area.