Ms Keneally said yesterday that she would meet Catherine Hill Bay and Gwandalan residents today, in response to a crucial Land and Environment Court decision last Monday.

Catherine Hill Bay Progress Association president Sue Whyte said: "We want the zoning changed."

Developer Rose Group said people asking the Government to revoke the zoning should consider the facts.

"Revoking the rezoning and stopping development would return 310 hectares of land, now in state ownership, to private hands," Rose managing director Bryan Rose said.

"The green buffer between two rapidly growing urban areas would be dissolved."

The NSW Government rezoned Rose Group land from conservation to residential and approved 600 houses at Catherine Hill Bay and 187 houses at Gwandalan last year.

The court quashed the development approval but did not make a ruling on the rezoning.

Residents did not ask the court to consider the rezoning, fearing it would be difficult to get a favourable decision.

Since their court victory, they believe there is a strong legal case against the rezoning.

The Government signed a memorandum of understanding in 2006 with Rose Group, which gave $143,500 to the Labor Party in the lead-up to the last NSW election.

The memorandum allowed for housing in return for the company handing over land for a national park.

The court judgement said the memorandum was "a land bribe in exchange for rezoning and associated development".