The 45-year-old male owner from South Australia pleaded guilty to development carried out without consent in the Land and Environment Court on December 20, 2011.

The court imposed a $7500 fine and the man will also have to pay the council's legal bills which the council's investigation and compliance coordinator Greg Pevitt estimated would be about $40,000.

In 2006 the council gave approval for a shed to be built on the property, which is zoned rural 1a, under the Local Environment Plan allowing the land to be used for agricultural purposes.

"It was always in the back of council's mind that the shed was not for legitimate services," Mr Pevitt said.

After moving into the shed in April 2011 the tenant, a disabled women who lived at the location with her 5-year-old daughter, contacted her real estate agent to ask why there were no waste bins.

Mr Pevitt said the real estate contacted council about the issue and the council then interviewed both the real estate agent and tenant before taking action against the owner in the Land and Environment Court.

The council will now pursue the man to remove the works carried out on the shed to make it habitable.

Mr Pevitt said it comes as an important reminder for people buying non-residential blocks in Bundabah, Pindimar and North Arm Cove that no unlawful building will be tolerated.

"At this stage Council isn't even considering rezoning the land," he said.

Mr Pevitt said there was also a substantial amount of caravans on non-residential properties at Pindimar.

While short-term camping is permitted on the land, the council is carrying out further investigations.