The Heritage Western Cape Appeals Committee has rejected the provincial government's appeal against the refusal of the Heritage Impact Assessment (HIA) for the Oude Molen Eco Village redevelopment.

The decision means the proposed redevelopment of approximately 13 hectares of state-owned land into a mixed-use precinct with residential, commercial, and educational facilities will be halted.

The committee found the HIA did not meet the requirements of the National Heritage Resources Act (NHRA), citing inadequate assessment of living heritage, cultural landscape, and mitigation measures.Residents and the Oude Molen Eco Village Tenants Association argue the site is a thriving community with existing public benefits, not vacant land.

The Western Cape Government plans to pursue legal and administrative avenues to challenge the decision, while the City of Cape Town continues collating public comments for a report to the Municipal Planning Tribunal.Developers will still need approvals from both Heritage Western Cape and the City for any future development.