Last month the Australian Financial Review reported that the deal for more than 437 hectares owned by 13 land holders had fallen through.

While head of Reed’s property development division, Ron Hirst declined to give a reason for cancelling the offer, AFR reported that a number of developers are pulling out of buying property in the area “due to uneasiness over environmental protection rules”.

Great Lakes Council’s director of planning and environmental services, Glenn Handford confirmed that the deal had fallen through but not because of any environmental reasons that he knew of.

“We’ve identified land that can be set aside for development and land for environmental protection,” Mr Handford said.

“Other developers have no problem with it. One example is the North Shearwater development going ahead and Geoff Cox’s development at Myall Quays. It’s just part of modern life now.”

Mr Handford didn’t say whether the broken deal was a benefit to the environment or a loss for the community.

“It was the last big track of development for North Hawks Nest , so it can’t continue to grow very much now.”

Mr Handford told the AFR that there are some land owners who have objected to environmental surveys carried out by council because they want to see more development in the area.