A STOP work order has been issued by the Department of Environment and Conservation (DEC) on development at Fame Cove.
DEC's stop work order on the site is for a period of 40 days and will allow time for further investigation.
The order has been issued under the National Parks and Wildlife Act.
Labor candidate for the seat of Port Stephens, Jim Arneman, said according to the DEC, the stop work order is designed to "limit any unnecessary damage to the site's important natural values whilst providing opportunity for all the elements to be appropriately considered with the property owners."
After concerns from the local community continued to arise regarding the site, Minister for the Environment, Bob Debus and candidates for the seat of Port Stephens met with members of the Save Fame Cove Action Group last week.
Resident environmental campaigner, Julie Savage, addressed the parties with a list of requests compiled by the Save Fame Cove Action Group, which included that the State Government purchase the site for national park and that the site be immediately rezoned Environmental Protection.
Ms Savage believes Great Lakes Council has effectively "torpedoed" Fame Cove by permitting four houses and a host of damaging associated activities.
"The State Government and Great Lakes Council need to be held accountable for their poor decisions, failure to rezone or acquire the site and lack of action in enforcing basic mitigation and remedial works," Ms Savage said.
"The community is outraged!" she added.
Mayor of Great Lakes Council, Clr John Chadban, said he appreciated the comments from the Save Fame Cove Action Group however he believes a few real truths must first be addressed.
"The first being that the land in question is a rural property, and whether we agree or not, they can use it as such within the law.
"The second real truth is that if the land is so precious then why didn't the State Government think it was worthy enough to buy when they had the chance?" Clr Chadban asked.
He further explained that the law permitted council to grant a Development Application for four houses.
Although the DA included protective conditions, these conditions could not stop the owner from building roads, fire trails and fences.
Fame Cove land is currently zoned Rural 1(a), as is much of the northern foreshore of Port Stephens.
Ms Savage believes land clearing and agricultural activities permitted under the Rural Zone are impacting on Port Stephens' water quality.
"This in turn impacts on aquaculture, fish stocks, tourism and the economic and environmental viability of the region," she said.
"The Marine Park Authority (MPA) needs to ensure that land uses affecting Port Stephens water quality in proposed Sanctuary Zones are closely monitored and addressed.
"What is the point of having Sanctuary Zones to protect habitat if land use isn't controlled?" she asked.
Liberal candidate for Port Stephens, Craig Baumann believes the government should rezone the whole property Environmental Protection.
"This is one of the worst cases of environmental vandalism I have ever seen.
"The site is pristine bushland and the area is currently zoned Rural 1(a).
"Having goats on the property is a joke. They are there to destroy the property. I think it is a disgrace," Mr Baumann said.
Mr Arneman agrees that Fame Cove should be a jewel in the town of Port Stephens and said it is clear that further investigation into work at the site is needed.
"The stop work order issued last Thursday will allow this to happen.
"This is great news for the community and will help save this precious area from the development and neglect that may have destroyed it," Mr Arneman said.
Recent activities from the new owners of the site have sparked wide inspections from Great Lakes Council, as well as representatives from the Department of Natural Resources.
Clr Chadban said various government departments had inspected Fame Cove and until this stop work order was issued, none had decided on any direct action.
"Council have asked the owner to do rehabilitation works and the owner has made claims about his entitlements - he is not entirely convinced council's opinion is completely right," Clr Chadban said.
"This demonstrates the difficulty in trying to control land use. The procedures involved are both tedious and time consuming.
"I only wish that council had direct powers to control these things," he said.
Clr Chadban believes the bottom line is that Fame Cove is private land zoned Rural 1(a).
"If the land was seen as being so vital and valuable the State Government would have taken it when it had the chance.
"Council doesn't have the means to do this," he said.
Local residents recognise that there is more work to do to save this wonderful area, but say the stop work order shows things are headed in the right direction.