The developer behind the state's biggest proposed housing development, Huntlee, said it would appeal against the court decision that threatened to derail its plans.
LWP Property Group said it would appeal against last month's Land and Environment court decision to quash the rezoning of the land near Branxton where it wants to build the region's first new town for 50 years.
The court overturned the project's state significant site status, declared under the former Labor government.
Managing director Danny Murphy said the appeal was based on strong legal advice.
At the same time, Friends of Huntlee group has launched an online petition to gather support for the development.
The company has also sought a meeting with NSW Planning Minister Brad Hazzard.
Friends of Huntlee spokesman Mick Starkey said Sweetwater Action Group, which challenged Huntlee in court, was a small but vocal group.
"They are blocking a much-needed development that will provide affordable, well-designed homes, social infrastructure, employment and business opportunities," Mr Starkey said.
Sweetwater Action Group president Chris Parker said it had received feedback that indicated it had strong support in the community, especially from those who lived nearby.
"I don't know what the [Friends of Huntlee] hopes to achieve," Mr Parker said.
"The appeals hearing will probably be more to do legal proceedings than outside influences.
"All along we as a group have been campaigning more on social and environmental things, unfortunately it's points of law that carry more weight."