But, this decision leads to more questions about Rotorua's future, especially when it comes to roading infrastructure.
This includes Rotorua's most controversial of roading projects - the Rotorua Eastern Arterial - which has been on the books for more than 60 years and is still no closer to going ahead.
The two projects have their differences. The Eastern Arterial would be 100 per cent funded by the New Zealand Transport Agency as long as the designated route is followed.
Funding would be limited to 57 per cent if the council and the transport agency were to look at other options, like upgrading Te Ngae Rd.
The Eastern Arterial is also seen as a major route for forestry companies getting their logs to port.
But, if the Victoria St Arterial, which was to link up with the Eastern Arterial at its western end, is no longer viable surely it's also time to rethink the Eastern Arterial route.
If our local roads are coping with the traffic, including an increase in logging truck traffic, what would be the point in spending tens of millions of dollars on a road to nowhere?