A plan to build up to 180 homes on the outskirts of Newcastle has been sensationally halted on the grounds that it is too close to Summerhill tip.
The Department of Planning this week granted a City of Newcastle request to discontinue the planning assessment process for the 505 Minmi Road development.
It followed concerns raised in an Environment Protection Authority submission relating to the impact of odours, gases and air emissions generated from the tip.
It is believed to be the first time a proposed housing development has been stopped on environmental grounds since the Minns government came to office.
The latest twist in the two decade-long saga surrounding the future of the land comes less than six months after the controversial approval of the adjoining Minmi Estate development.
Opponents of the 505 Minmi Rd project celebrated Wednesday's news and renewed their push to have the 26 hectare block incorporated into the surrounding national park as part of regional green corridor project connecting the Watagans and Stockton Bight.
"After 21 years we are obviously extremely pleased but it's not over yet," Brian Purdue, who has led the community campaign to save the site, said.
Peter Durbin, who purchased the land in the late 1990s, said he had been blindsided by the rejection and said it flew in the face of the government's push to build more housing.
"There hasn't been a requirement for us to talk to the EPA in 20 years and suddenly they get involved at a very late stage. The question is what has prompted that?," he said.
The project, which was assessed under the state government's Gateway rezoning process, has been staunchly opposed by Wallsend MP Sonia Hornery and City of Newcastle in recent years.
Mr Durbin said he would continue to fight to see the development realised and ruled out selling the land to the government for use as a national park.
"We have got lots of national parks. I'm not opposed to national parks, they are important. But I think the need for housing in areas like this is critical," Mr Durbin said.
"The housing crisis is on the news every day. What are we doing about it? We are shutting down sites that have been identified for housing for decades."
Planning consultant Stephen Barr, who has worked on the project for the past seven years, said the proposed development was more than a kilometre from the Summerhill tip, whereas the EPA guidelines stipulated a buffer of 250 metres.
"My concern is that if it's not suitable to have houses in the area where this has been identified, what does it mean for the existing houses that are a lot closer?," he said.
He questioned why the same concerns had not been raised regarding the Winton Property's Minmi Estate development .
"When we looked at the conditions of consent for that, even though it's not our development, there's absolutely nothing from the EPA, no conditions, nothing."
Mr Barr questioned why a minimum of 12 months was needed to meet relevant EPA guideline assessment requirements.
"It raises some pretty deep concerns if the council and the EPA are saying you need to do more than 12 months of investigation on the site. Do they have information that we are not aware of about gases and odours going beyond the facility," he said.
"Why would you need to study all this stuff for 12 months if the facility is being well managed?"
City of Newcastle Deputy Mayor Declan Clausen said the 505 Minmi Road remained a critical part of the Lower Hunter's Green Corridor.
"This decision will be welcomed by many in our community, including more than 360 people who made formal submissions during the recent exhibition process," he said.
Councillor Liz Adamczyk agreed the city needed more housing, however, she said the council had consistently shown there were better ways of housing the city's growing population than furthering urban sprawl.
"The development currently occurring in Minmi, approved by former NSW governments, shows the impact of urban sprawl on our environment," she said.
"This is a sensible outcome, and a credit to the community, council and NSW Government.
"I look forward to continuing efforts to secure the permanent preservation of this important site."
Wallsend MP Sonia Hornery praised the "bold decision" to refuse the 505 Minmi Rd development.
"There were too many issues with this site that couldn't be ignored, including loss of green space, the proximity of the development to the Summerhill waste site and species and habitat loss," she said.
"Enormous credit must go to the many community campaigners who have worked to protect this land, in particular Mr Brian Purdue, who has been a constant voice in favour of preserving this green space. I'll keep working with the Planning and Environment Ministers and City of Newcastle to ensure the best outcomes for this important parcel of land."