Land above that spectacular coastline is used for many purposes including farming, horticulture, grape growing for the Spencers' award-winning Man O'War Vineyards and olives.
Man O'War went to the High Court last month to appeal against an Environment Court ruling on the land.
The judge said Man O'War owned a 2364ha rural property at the eastern end of Waiheke and on Ponui.
Matt Casey QC represented Man O'War and submitted that the Environment Court had erred in its decision given on July 29, 2014.
At issue was about 1925ha of the farm property being mapped as outstanding natural landscape.
The outstanding natural landscape classification would unreasonably stop Man O'War establishing or expanding activities on its land, Man O'War had argued.
But the council's case was that the Environment Court applied the right test in deciding which land was outstanding natural landscape. If the district plan permitted activities that adversely affect outstanding natural landscapes, the council said the answer was to change the district plan, not the landscape classification.
Read the latest court decision here: