Those in support of developing a prime piece of land on Wellington's waterfront aren't giving up hope.
The Environment Court has ruled against Wellington City Council's Variation 11 district plan change.
That means the North Kumototo area now has a building height restriction for new developments, and one section can no longer be developed on at all.
Councillor Ray Ahipene-Mercer says he hasn't looked into the judgement in detail but believes there's still potential.
"It is a setback and some people will see it as some kind of victory, but I want to finish off by saying the developments that started at the eastern end and have progressed right through, 94% of 'Wellingtonians' agreed that the developments have been great."
Mr Ahipene-Mercer says that indicates locals generally support waterfront development.