Vic court upholds Bendigo mosque approval

A controversial mosque in Bendigo is likely to go ahead after a Victorian court has ruled its construction would not cause adverse social impacts in the community.

But the group of Bendigo residents opposing the mosque, led by local woman Julie Hoskin, say the fight may go on.

"It could go to the High Court - we'll see what happens further down the track," Bendigo councillor Helen Leach, a mosque opponent, said.

The Court of Appeal on Wednesday rejected the group's bid to appeal against an earlier ruling by the Victorian Civil and Administrative Tribunal, which upheld the City of Greater Bendigo's decision to grant the planning permit.

The hundreds of objections included fears that a mosque would set precedent for sharia law, that locals would be run out of town because they would feel uncomfortable and that the Muslim population would "take over" Bendigo.

The judges rejected the argument that VCAT had erred in law, and ruled there was no objective, concrete evidence it would cause negative social impacts.

They said VCAT gave the group every opportunity to present its case, including lengthy adjournments so it could obtain expert evidence.

The Australian Islamic Mission, which is behind the mosque proposal, thanked the Bendigo community and council.

"The wider Bendigo community has shown resilience and solidarity and we are so appreciative of the heartwarming support we received," it said in a statement.

"We would especially like to thank the Bendigo council for holding on [to] the great Australian values of equality, freedom, democracy and a fair go for all."

AAP sought comment from Ms Hoskin, but was told by a member of the Voices of Bendigo Facebook page that she was getting treated in hospital after a fall outside the court following the verdict.

The proposed mosque has divided the community and led to several heated protests.