Updated 12.02pm: A big win for Aucklanders over a controversial new sculpture destined for Queen's Wharf.

It's going ahead at no cost to ratepayers, after an anonymous donor stepped up to chip in the shortfall for the $1.5 million project.

The council's chief operating officer Dean Kimpton says the original concept of a state house remains and he explains why it's called a lighthouse, when it isn't really a beacon for sea-goers.

"It's referred to as a lighthouse for a range of reasons, but in part because because of the chandelier design, and as it's a welcome light to those who come to Auckland, and Aucklanders."

Dean Kimpton says the chandelier design has changed somewhat and now 10 lights will form the Matariki constellation. 

Mayor Len Brown hopes the sculpture of a "typical kiwi house" will be Auckland's Opera House or Eiffel Tower.

But plans have been revised, after it emerged Auckland Council might have to cover a million-dollar budget shortfall.

Real estate company Barfoot and Thompson is putting a million towards the project.

Newstalk ZB understands an antonymous private donor is covering the remaining half a million dollar cost.