A battle over plans for a luxury lodge near Wanaka has reached the end of the road

A proposal from a company associated with a US billionaire Peter Thiel has been thrown out by the Environment Court.

It follows an appeal against the council's decision to refuse resource consent for the lodge at Damper Bay near Wanaka.

A council statement says the Court criticised how it dealt with the process - and the proposal was more appropriate and potentially consentable after the appellant change.

It's awarded more than 44 thousand dollars against Queenstown lakes District Council.