In 2007, Dallarex Pty Ltd applied to the council to develop two lots at 20 Noonan Grove and 25 Ashbourne Road in Woodend. The total land area is seven hectares.

Despite a council officer's recommendation, the council refused to approve the development. The matter then went to VCAT.

Tribunal presiding member Rachel Naylor said she was aware the applicant had been through a "tortuous and drawn-out history" in its attempts to have a development plan approved.

She said there were parts of the proposal that she could not support, including management of flood and stormwater, vegetation and roads.

"Many of the matters we are not satisfied with involve not only the applicant but also the council and other public agencies.

"As such, we are not persuaded this is a situation where an interim order is appropriate.

''Rather, we hope that our detailed findings on the issues raised by the council and ourselves will assist the parties in considering a new development plan for this land."