COFFS Harbour City Council won't be launching a High Court appeal to the state government's 2010 approval of the 200-lot Sandy Shore development.
Council had previously lost a land and Environment Court appeal against the development at Hearnes Lake, south of Woolgoolga, and been ordered to pay court costs.
General manager Steve McGrath said based on legal advice there will not be an appeal.
"I guess what council was doing is responding to significant concern regarding the size of the development in that locality," he said.
"It goes back to when council had adopted a development control plan to guide the amount of development that should occur on that site, considering some of the constraints that had been identified with the site."
Mr McGrath said the council is seeking advice regarding future applications.
"I guess the next stage is for the council is to understand how we may be involved in dealing with further development applications for subdivision releases from that particular concept plan," he said.
"There is still a little uncertainty around the consent.
'It was suggested that the planning department would be the ongoing consent authority but that may have changed since Part 3A has been repealed."