Commissioners today announced they had granted the project a resource consent following a three-day hearing in November.
A number of conditions relating to noise, hours of operation, and traffic management have been put in place.
Canadian developers Select Evolution want to build the park on 358 hectares of forested land, between Dyers Pass, Worsleys and the Summit roads.
The park, which will be unique in New Zealand, will include more than 100 kilometres of downhill mountain bike routes, a 1.8km-long chairlift for people and bikes, 2km of zip lines through the forest, a mountain coaster and a restaurant and bar seating up to 180 people.
It will also include accommodation for up to 252 people in a combination of five lodges and 14 cottages.
There will be parking for 220 cars, walking trails, a bike school and rock climbing activities.
The land is owned by McVicar Holdings and would be leased by Select Evolution for a 50-year term.
The project attracted more than 640 submissions, with 35 against.
The developer said last year, if the resource consent application was successful, construction would start in March and take 12 months to complete.