A developer's application to have land housing koalas at Bonny Hills rezoned to include residential status has been rejected.
The request was not backed by Port Macquarie Hastings Council staff in its current form, despite the applicant asking for part of the Beach Street lot to be zoned for environmental use.
The application was knocked back 6-1 by Councillors overnight.
Council staff will prepare a planning proposal to reduce the residential footprint for the parcel of land.