A bid by the Prostitutes Collective to turn a house in Christchurch into its new local headquarters has been turned down.
A report from council-appointed commissioner, Ken Lawn, said the collective bought the two-story residential building on Manchester Street, in the heart of the city's red light district, to be used as a base for nurses, outreach workers, and counsellors.
Its current headquarters is several kilometres south.
However, the proposal faced backlash from residents, who say they are concerned about ongoing issues with some sex workers, including littering and noise.
Mr Lawn said in the report that he was not convinced the collectives proposal would provide any benefit to the residents living in the area, and he had refused its application.
"I acknowledge that there are significant adverse effects of street based sex worker activity in the area, but I have concluded that I had no evidence or basis to conclude that the proposed NZPC facility will make any difference, either to increase activity and effects, or to have a positive influence on on-street behaviour," Mr Lawn said in the report.
"I am not convinced that the proposal will provide any focus on, or benefit to, the residents living in the residential area," he said.
The residents who opposed the collective's application said they were relieved it had been refused.
A spokesperson for those residents, Sophie Goodwin, said the residents were concerned that ongoing issues with sex workers, such as noise and litter, would be concentrated around the facility if it went ahead.
"We feel that is the right decision ... it is a residential area," she said.
"It would be more appropriate for the centre to be in a commercial or industrial area."
Prostitutes Collective spokesperson Catherine Healy said she was very disappointed the application had been turned down.
"We felt that if we were located in that area would could affect more change," she said.
"We'll have to come up with other ways for us to work and bring about a good solution for residents and sex workers alike."
Ms Healy also rejected the resident's concern that issues regarding sex workers would be concentrated near the facility.
"I think that would not have occurred, sex workers like to spread out," she said.
"They don't like to work together in clusters ... it's a pity that they had that perception."
She said the Prostitutes Collective did not plan to appeal the decision at this stage, and the building was likely to now be rented out to residential tenants.