A contentious tourism development at Lake Malbena in the state's World Heritage Area will proceed after it received backing from a state planning tribunal on Monday.
The proponents of the high-end fly-fishing venture, Daniel and Simone Hackett, took the Central Highlands Council to the Resource Management and Planning Appeal Tribunal after it refused to approve the project in February.
The project had received intense scrutiny and opposition since it was made public with concerns raised over disturbances to the national park area by helicopter flights.
The venture is one of 50 projects under the state government's expressions of interest process for tourism developments in reserved areas.
MORE ON THE LAKE MALBENA PROPOSAL:
In a statement, Mr Hackett said the project had now gone through several federal, state, and local government assessments and appeals.
"We are proud of what we have achieved, designing a small scale, sensitive proposal that has passed the highest levels of scientific scrutiny ever applied to an Australia tourism project," he said.
"With a development application now approved, we look forward to quickly moving on with the project."
Environment Minister Peter Gutwein said RMPAT's decision was a "positive endorsement" of the government's expressions of interest initiative.
Wilderness Society spokesman Tom Allen said it was disappointing the development was not assessed by the tribunal against its management plan
He said the organisation would consider the right to appeal the tribunal's decision within 14 days.
The development on Halls Island in Lake Malbena is to be made up of demountable huts with kitchen and toilet amenities.
It has been proposed there will be up to 240 helicopter flights into the area each year for six guests at a time.
Helicopter flights will only take place over 60 days over the year.
The State Growth department has received just two new applications for development projects in the state's parks, reserves and Crown land over the past six months.
A list of projects that have either been approved or are under negotiation can be found on the Co-ordinator General's website.