After more than an hour debate and presentation from council staff the decision has been made to remove the Rotorua Eastern Arterial designation from the district plan.
The decision was entirely administrative as the New Zealand Transport Agency's decision could not be overturned by council.
Councillors Gould, Searancke and McVicker voted against.
About 20 iwi were in the council chamber to hear the decision and polite applause came from the public gallery.
Mayor Steve Chadwick, deputy mayor Dave Donaldson, councillors Karen Hunt and Janet Wepa and one Te Arawa board member will go to the Local Government New Zealand conference in July.
Te Arawa will choose which member will go.
The cost is $1410 each, excluding airfares and accommodation.
The conference is being held in Dunedin.
The Rotorua Lakes Council strategy, policy and finance committee meeting is now underway - with a full agenda including lifting the Rotorua Eastern Arterial designation on the district plan.
Also on the agenda is the discussion around a new spatial plan for the district, statements of intent for Rotorua Regional Airport and Rotorua Contracting, a review of economic development services and who should represent the council at the upcoming Local Government New Zealand conference.
Also joining the meeting, with full voting rights, will be two members of the Te Tatau o Te Arawa Board elected by the iwi to represent them on council. They are Ana Morrison and Eugene Berryman-Kamp.