The Meander Valley Council voted against its own application to formalise camping at the Bracknell River Reserve.
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Seventy-four submissions were received opposing the development which would have restricted overnight stays to up to 10 self-contained vehicles for a maximum of four nights.
The most prominent issue raised with the proposed development was its limitations and restrictions to Bracknell residents and day visitors to the area.
Resident Ian Mackenzie gave a representation at the meeting on Tuesday night and said the council's application was a complete waste of rate payers money and should be withdrawn.
"There's no need, there's never been a need for it," he said.
"It's been a campsite for well over 40 years...it should benefit the entire community, not just 10 RVs."
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Bracknell resident Brad Hafner said an overwhelming number of people were opposed to it being restricted to RVs only.
He said the community was outraged about the lack of consultation before the application was submitted and wanted an exception to allow residents to camp overnight and use the area.
"The majority do not object to be river reserve application what they object to is limiting local people using the area," he said.
"It's not fair, it's just not fair...people want to be able to use their local river area.
"They set this up 40 years ago, they maintained it and built the buildings and amenities with their own hands."
The council rejected the application based on its detrimental impact on the locality and impacts on nearby residences.
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