Ballina Shire Council has won a major court battle over a proposed $25 million tourist park on environmentally protected land at Alstonville.

The Land and Environment Court has ruled the proposed 145-site development at 10 Lismore Road cannot go ahead under the site’s existing planning rules.

The previously unreported win has been disclosed in Council’s legal matters update going before councillors at Thursday’s ordinary meeting.

The proposal, known as Hinterland Village, included 116 long-term and 29 short-term sites, with two and three-bedroom homes, a swimming pool, playground and community centre.

But the almost seven-hectare property sits within an environmental protection zone intended to maintain the rural buffer separating Alstonville and Wollongbar.

That zoning ultimately became the key to Council’s court victory.

Court backs Council

Council refused the development application, prompting applicants David Morgan and David Hughes to take the decision to the Land and Environment Court.

At the heart of the dispute was a relatively simple question: could a tourist park legally be built on this environmentally zoned land?

The developers argued that while a caravan park was not normally allowed in the zone, other provisions in Ballina’s older planning rules provided a pathway for tourist accommodation.

Council disagreed.

Rather than immediately embarking on what could have been a long and expensive hearing over traffic, flooding, bushfire, ecology and other issues, the Court agreed to settle that basic question first.

Council’s latest legal report reveals it has won.

“A decision on the specific question of permissibility was handed down on 24 July 2026,” the report says.

“The Court found the proposed development was not permissible.”

The developers have not necessarily exhausted their legal options.

A further court hearing is scheduled for August 31, when they are expected to indicate whether they intend to appeal the ruling.

If they do not appeal, Council says the proceedings will end.

A win for ratepayers

The decision also represents a welcome legal win for Ballina Shire ratepayers after Council suffered a significant defeat in another major development and environmental battle earlier this year.

In February, the Land and Environment Court cleared the way for GemLife’s 110-home over-50s development at West Ballina.

That decision rejected objections to the development which had included concerns over flooding, biodiversity, groundwater and bushfire risk.

The GemLife dispute followed an earlier court battle over the same site which had already cost ratepayers more than $600,000.

By comparison, Council’s latest legal report shows the Alstonville tourist park case has so far cost about $85,000, against a budget provision of $300,000.

The latest victory could also save ratepayers considerably more by avoiding a lengthy hearing over the full merits of the development.

An earlier court decision revealed the developers had contemplated calling as many as 16 expert witnesses covering matters including traffic, bushfire, ecology, flooding, acoustics and planning.

Mayor questioned proposal from the start

The ruling also backs concerns raised publicly by Ballina Mayor Sharon Cadwallader when the proposal went on exhibition in 2024.

Cr Cadwallader said she was surprised to see such a development proposed on environmentally zoned land.

“It’s a development that I was so surprised to see coming out on exhibition,” she said.

“Anything to do with environmental protection zones, which this is in an E1 zone, would need to be rezoned first.”

The developer, however, argued the project could help provide much-needed accommodation on flood-free land.

“Are we looking to build some affordable, flood-free housing?” he told NBN News at the time. “We need it.”

Plans included energy-efficient two and three-bedroom homes, while the developer said about 30 per cent of the property would remain open space.

Residents raised concerns about increased traffic, continuing development across the Plateau and the loss of the area’s rural character.

The developer maintained the necessary studies had been completed and did not believe traffic presented a problem.

Why the buffer matters

The land’s environmental zoning is significant because it is intended to help prevent Alstonville and Wollongbar gradually merging into one continuous urban area.

That makes the court decision important beyond the fate of this particular development.

For now, the proposed $25 million tourist park is blocked.

Whether that becomes the final word will depend on whether the developers decide to appeal.

Council’s legal update will be formally presented at Thursday’s meeting.

Related: Court clears GemLife development, rejects flood concerns