The KI Council at its May 14 meeting voted to re-dedicate three lots along Kingscote Terrace at the Kingscote Jetty to allow the Bickfords Group to move ahead with its plans for a distillery.
The old Kingscote police station on Lot 100 will be sold to Bickfords and Lots 101 and 103 will be transferred back to the State Government.
Bickfords marketing manager Chris Illman told The Islander the plans was to build a craft distillery and brewery that was sympathetic to the current infrastructure, delivering a unique tourism offering on the Island.
"We now await the State Government to create the title so we can settle on the land. We believe that is a six-month process. Post settlement we will share our master plan with council," Mr Illman said.
"In the mean time the Bickford's Group of Companies will continue to develop and grow our market leading brands like 23rd Street in Renmark, Beresford of McLaren Vale, Beenleigh Australian Rum and Vale Brewing of McLaren Vale."
The Islander previously reported on the development getting the green light in June 2017.
The development would create an integrated tourism and hospitality facility designed to attract visitors, promote the food and wine industries and generate jobs, that story reported.
The plan at that time included the establishment of a visitor and function centre and the redevelopment of the old Kingscote police station and nearby land.