Queenstown's mayor says further development along Ladies' Mile is improbable unless the New Zealand Transport Agency can find a solution to increasing traffic congestion.
Roadworks at the notorious Tucker Beach Road intersection have exacerbated existing traffic woes along State Highway 6 - with reduced speed limits likely to be in place until at least the end of January.
The speed limit in the vicinity of the roadworks was initially lowered from 80 to 60 kilometres per hour.
That's now been reduced to 30.
There has since been an increase in congestion, particularly for those trying to get onto the highway from Lake Hayes Estate and Shotover Country.
Queenstown mayor Jim Boult says he's asked NZTA to look into what can be done to smooth traffic, as it's almost at a standstill.
But NZTA say only two complaints about the traffic have been received and there was congestion before the project started.
The Tucker Beach Road project is set to be completed in April next year.