The rezoning of a strip of Kiama land with capacity for hundreds of homes may not be revisited under the new Labor government.
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The controversial South Kiama Planning Proposal involves a 40-hectare parcel of land west of the Princes Highway, with capacity for more than 400 homes.
Kiama Municipal Council and the community were opposed to the rezoning.
Council had previously rejected the plan, and residents took their concerns to parliament house.
The Department of Planning Industry and Environment (DPIE) approved the rezoning, prompting protesters heading to parliament house to speak with former Planning Minister Rob Stokes.
The minister agreed to an independent review of the decision, however that advice also supported the rezoning.
"Independent expert advice found the proposal should be supported and could lead to much-needed and well-located housing for the region," the department's Executive Director of Local and Regional Planning, Malcolm McDonald said last year.
With a new government coming in, some had hopes the decision would be reversed, with Kiama MP Gareth Ward lodging questions on notice about it to new Planning Minister Paul Scully.
In a reponse to the Mercury, Mr Scully did not appear to back a call to revisit the decision.
"I acknowledge the concerns about changes to the local area, and note the previous government made this rezoning decision," Mr Scully said.
"The previous government's rezoning decision was made following an independent review requested by the Member for Kiama.
"I note the department has considered council's position and the submissions to the planning proposal, as well as relevant planning strategies such as council's Local Strategic Planning Statement."
He also said the state had "a critical undersupply" of houses and there was a shortage of new homes being built.
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