Plans for NSW coastal development defeated

Plans for a function centre on a picturesque coastal headland in NSW have been overturned, laying down a precedent for similar cases.

The NSW Land and Environment Court's decision to overrule an approval to build in Newcastle's King Edward Park is tipped to have widespread implications for other plans to develop crown land reserved for public purpose across the state.

Stronach Group gained approval from Newcastle City Council in 2011 to build a function centre in the park, which has unobstructed views of the Pacific Ocean.

The development site is on crown land reserved for public recreation.

Community group Friends of King Edward Park challenged the development approval in court and claimed a win on Monday.

The court found the function centre would have been used primarily for weddings and would not provide for public recreation.

The park's Plan of Management was also found invalid.

The "landmark" decision is being seen as a precedent that will test future development plans on crown land across NSW.

"This is a win not just for King Edward Park, it will give strength to communities across the state who are opposing the privatisation of crown land in their patch," Greens MP David Shoebridge said.

"Whether it is the Talus Trust land in Willoughby, the Paddington Bowling Club or one of countless reserves up and down the coast the pattern is the same, with crown land being eyed off by private interests for private profits."