Fletcher Building is already building 99 houses on a 1.4ha Special Housing Area adjacent to the quarry. The terrace houses reflect the style of housing to be built within the Three Kings development.

Construction of a controversial $1.2 billion Auckland housing development will go ahead following more than five years of opposition.

Up to 1500 dwellings will be built at the former Three Kings Quarry between the suburbs of Mt Roskill and Royal Oak, after a compromise was reached between developer Fletcher Living and resident groups.

Community consultation on the $1.2 billion redevelopment began in 2008.

DANIELLE STREET/FAIRFAX NZ Three Kings Quarry is the second largest brown field site in Auckland.

However, it has been fraught with delays, with residents' groups opposing the development.

Three Kings residents groups took the matter to the Environment Court and High Court, due to concerns about the depth to which the development was required to dig into the earth and provisions approved by Auckland Council.

CATRIN OWEN/FAIRFAX NZ Fletcher Residential and Land Development chief executive Steve Evans and Housing Minister Nick Smith say they're pleased an agreement has been reached.

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They were up against Fletcher Building and the Government, who both supported the development.

Now the parties have reached an agreement, after Fletcher made changes to its plans. The development will go ahead this summer with the first homes completed in 2019.

SUPPLIED The master plan for the Three Kings redevelopment will provide up to 1500 homes.

Fletcher Residential and Land Development chief executive Steve Evans said the agreement required up to four metres of additional fill in the former quarry.

Other changes include better connection to a new town square to be built and better recognition of maunga and other volcanic features.

All appeals would be withdrawn, Evans said.

Three Kings Quarry was the second biggest brown fields site in Auckland, Evans said.

The development would include a town square, two playing fields, a village green and a wetland park with boardwalk.

It would be "respectful" of nearby landmarks such as the Big King volcanic cone, he said.

Minister for the Environment and Housing Minister Nick Smith said he was frustrated it had taken so long for the development to go ahead but acknowledged the need for compromise.

"It will transform the eyesore of a derelict quarry into a modern, integrated, inner-city community with a town centre, high quality public spaces and playing fields," Smith said.

The development was subject to more than 100 consultation meetings and dozens of High Court, Environment Court and commission hearings.

The development was expected to create hundreds of jobs.

South Epsom Planning Group president Dick Bellamy said it was pleased Fletchers has made the changes.