The Twizel and Tekapo community boards believe the proposal to close the canal road between Lake Tekapo and Lake Pukaki while retaining recreational access is the best outcome.
After an independent traffic review and consultation by Genesis Energy, the canal road will remain closed to through traffic.
Genesis said that because the road was private and not policed, it was too dangerous to reopen.
Twizel Community Board chairman John Bishop said its main concern was about the recreational side but the proposal covered this.
"We discussed it, and agree it's the best response and are on board with it. It is much better than what we expected."
Tekapo Community Board chairman Peter Munro said that although it would have been perfect to have the road open to everyone, it was positive for people to still have access to the canal.
"Genesis have come up with a reasonable plan that will suit everyone, positive for cyclists in the area, and still allows fishermen to fish."
He said having the cycle track on the canal road, with outstanding views, was unique, complementing the Alps 2 Ocean cycle trail, and it was safer without the through traffic.
Tourism Waitaki general manager and Alps 2 Ocean operator Jason Gaskill said it was excited about the prospect of working with Genesis and the possibilities to come from being incorporated into the trail.
"We have no idea what's going to happen, but in a general sense are really looking forward to working with them."
Mr Gaskill said the number of trail users at the moment was encouraging, but Tourism Waitaki wouldn't know how the canal road proposal would affect it until it knew more specifics.
- The Timaru Herald