'Cannot be saved': Satterley's Perth Hills estate plan rejected - ABC News & Headlines – Australian Broadcasting Corporation

The proposed development site in the Perth Hills. (Supplied: Amended North Stoneville Structure Plan 34/Cossil & Webley)

The Satterley Property Group has lost its bid to develop a 1,000-lot town site in a parcel of bushland in the Perth Hills, with the State Administrative Tribunal rejecting the plan.

The tribunal found the North Stoneville development did not adequately address the bushfire risks.

The decision has been welcomed by advocacy groups who raised concerns about the fire risk and loss of native bushland. 

Controversial plans to develop a town site in a bushfire prone area in Perth's Hills have been stifled by Western Australia's administrative tribunal, which found the proposal was so fundamentally flawed that it could not be "saved".

Australia's largest private land developer, the Satterley Property Group, led by Perth businessman Nigel Satterley, has been trying since 2017 to develop a town site in the Shire of Mundaring on land owned by the Anglican Church.

The North Stoneville development would have housed about 2,800 people in 1,000 lots, and included two schools and a local centre.

But the plan has faced significant backlash, with the local council and WA Planning Commission each rejecting it twice, leading to Satterley's appeal of the decisions in the State Administrative Tribunal (SAT) last year.

In its decision, handed down on Wednesday, the SAT found Satterley's plan did not adequately address bushfire risks in the area, and that it had "such basic flaws that it cannot be 'saved' by the making of modifications".

Part of the land earmarked for development in North Stoneville. (Supplied: Nearmap)

The tribunal acknowledged the state's ongoing housing crisis, but said any development needed to manage the risks to life, such as from bushfires, to an acceptable level.

Nigel Satterley told the ABC the company was disappointed with the decision and was reviewing the 177-page SAT judgement.

The proposed development has faced long-running opposition from locals and advocacy groups who held rallies and raised concerns about the bushfire risk and loss of native bushland. 

More than 1,500 people attended a Save Perth Hills rally last year. (ABC News: Phoebe Pin)

In its plan, Satterley said the development was "strongly influenced" by its desire to create "a bushfire resilient community". 

Chair of advocacy group Save Perth Hills, Debra Bishop, said the SAT's ruling was a significant win for the community.

"We have won, we have beaten a plan that was putting profit before people," she told 102.5 ABC Perth.

Ms Bishop said the proposed development would have come with a significant environmental impact.

"It's 535 hectares, which is larger than East Perth, larger than Kings Park," she said.

"This decision means 60,000 trees, which consist predominantly of 100 to 200 year old jarrahs and marris, will now be saved and spared."

Satterley had proposed to offset the environmental cost by installing 70 artificial nesting hollows for birds at a site in Williams, about 180km south east of Stoneville.

WA Liberal planning and lands spokesperson Neil Thomson said it was clear Satterley needed to go back to the drawing board if it wanted to proceed with the development.

"The structure plan has been ruled out by two independent bodies, there needs to be a reassessment of that structure plan," he said.

The development would have taken about 15 years to construct.