GrainCorp will also have to pay all legal costs, although it has 28 days to lodge an appeal.

Spokesman Angus Trigg could not confirm whether it would take this avenue, but said the company was considering its options.

Liverpool Plains Shire Council (LPSC) mayor Ian Lobsey said he welcomed the decision and was pleased for the Werris Creek community, which had demonstrated “overwhelming” support for the village.

The dispute was about whether the 1500-room MAC Services Group development was residential – and therefore not allowed on the agricultural-zoned land – or for another use.

GrainCorp took action against MAC Group, LPSC and the northern Joint Regional Planning Panel (JRPP) after the development was approved last November, on the basis the proposed village was residential and in breach of the Environmental Planning and Assessment Act.

But the council and MAC Group argued the development was of an “innominate use” and legitimate under the council’s local environmental plan – and the JRPP agreed in its determination.

In his decision to dismiss GrainCorp’s case, acting Justice David Lloyd agreed the MAC village did not fall within the definition of residential, citing previous cases that defined residential as a place for human habitation with a significant degree of permanency.

The village would have a transient population, would not have the physical features of a typical residence – with a communal kitchen and restaurant, manager’s office and retail area – and returning occupants would not necessarily be allocated the same unit.

“Would any of the occupiers of this facility call it their residence? I suspect not – they would regard their residences as being elsewhere,” acting Justice Lloyd said.

GrainCorp also argued fundamental matters on the provision of infrastructure were not considered before the JRPP gave the development the green light.

In giving its approval, the JRPP said the consent would not be operational until LPSC developed and endorsed an infrastructure servicing strategy.

Acting Justice Lloyd said the JRPP had been satisfied the relevant infrastructure could be provided and would be dealt with through a deferred consent condition, dismissing GrainCorp’s argument.

In a community meeting in February this year, GrainCorp said it was worried people staying at the village would complain about dust and noise from its storage and transport facility, which could affect its operations.

These claims were met with derision from members of the public, who said GrainCorp’s impact was greater on them than it would be on the proposed village.