A proposed monorail from Queenstown to Te Anau doesn't make sense financially or environmentally.
Conservation Minister Nick Smith has announced the venture will not receive consent to proceed because it fails to stack up.
It was the brainchild of Wanaka developer Bob Robertson and would have brought tourists to his lodge at Te Anau Downs.
Dr Smith says the route was ill-defined and would have caused considerable dmanage to flora and fauna in the area.
It would have cost around $250 million and close to the same amount to remove if it had failed for any reason.
It would also have required access roads and a 6m wide corridor.
Mr Robertson has developed several subdivisions around Wanaka as well as Pegasus Town near Christchurch which was placed in receivership and subsequently sold to Todd Group to complete.