The Environmental Protection Agency (EPA) said keeping Test matches at New Zealand's oldest cricket ground was a major factor in rejecting plans for an NZ$90 million (USD 78 million) fly-over next to the venue.
"We found that the expert evidence pointed clearly to the conclusion that the project would constitute an inappropriate development within this significant heritage area of the city," a four-person panel of assessors found in a 3-1 judgement.
Experts including former Black Caps bowler and New Zealand Cricket chief executive Martin Snedden had warned that traffic on the fly-over could prove a dangerous distraction to batsmen at the ground, jeopardising its Test status.
The area was originally a basin, or dock, until a massive earthquake in 1855 changed Wellington's geography, draining away the water, according to Heritage New Zealand.
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It was originally used for cricket in the 1860s and hosted its first Test match in 1929.
The Green Party said the decision was "a victory for common sense".
New Zealand's roads authority, which had argued the fly-over would ease major traffic bottlenecks in the area, has until the end of next month to appeal the decision.