Lobbyists at Alcohol Healthwatch are taking heart at the first dismissal of an appeal of a local body alcohol policy.

The Alcohol Regulatory and Licensing Authority has backed Tasman District Council's plan, which has a 2am closing time.

The appeal was seen through to its end by Hospitality New Zealand, with supermarkets and liquor store chains dropping out earlier.

Spokeswoman Rebecca Williams says the decision sends the industry a clear message.

"We're in a changed environment and we are working to reduce harm through these processes and I don't think the authority's going to take too lightly appeals on very very limited grounds."

It was the first challenge to a new local alcohol policy, and Ms Williams says good sense has prevailed.

"The authority's clearly indicated that the community does have the right to regulate and to reduce alcohol availability in the community."