Sweetwater Action Group members and Cessnock Greens councillors Chris Parker and James Ryan celebrated another win on Thursday afternoon when Justice Peter

Biscoe upheld the group’s appeal against the development in the Land and Environment Court.

The Environmental Defenders Office acted on behalf of the residents’ group to challenge the state significant site declaration for the $1.5 billion project by then planning minister Tony Kelly.

The case was heard over three days from June 22 to 24.

Huntlee had been touted to become the first new Hunter town for almost 50 years, to provide up to 7500 homes, 3000 permanent jobs and 200 hectares of employment lands.

But a jubilant Cr Ryan said the judge’s ruling meant the project was dead for the second time, following the Sweetwater Action Group’s first win in the Land and Environment Court in 2009.

“It means the whole state significant site listing is void,” Cr Ryan said outside the court on Thursday.

“Our case got up on grounds 1 and 2, that the minister did not take into account that the site was contaminated and that there were no suitable means of enforcement for the Voluntary Planning Agreement, which involved the handover of hectares of land and $1 million if the developer went bust.”

LWP Property Group, which was behind the development, issued a statement that it was disappointed with the court ruling.

“We will now regroup and assess all our options,” LWP managing director Danny Murphy said.

“We remain committed to this important regional project and take Justice Biscoe’s decision and feedback on board.”

Cr Ryan said if a third application for the project was lodged, it would be under new planning laws after the new Coalition government repealed the controversial Part 3A.

He wanted the company to find an alternative site.

“They can try again but the law has changed and let’s hope it’ll be harder for them the third time round, and there’ll be more checks and balances,” Cr Ryan said.

“I hope that at some point the developer realises this site was never suitable for large-scale development.

“Because of the endangered Pauciflora, endangered woodland, and contamination issues, this site was never suitable for 20,000 people.”