Plans to dump loads of Sydney landfill to an old quarry in Bell have been refused by the Western Planning Panel.
"It proves that a group of seniors and tradies can make a difference," said Kaye Whitbread on behalf of the Bell Quarry Working Group.
The residents have fought for almost three years to stop the proposal to "rehabilitate" the old quarry.
The plan would have seen up to 74 trucks a day carrying landfill from Sydney up either Bells Line of Road or the Great Western Highway and then along Sandham Road, Bell.
But, after a teleconference meeting on Monday, the panel voted unanimously to reject the DA, saying it would bring "unacceptable environmental impacts" to the Blue Mountains National Park, the world heritage area and the Wollangambe and Colo river systems.
"The scope of the likely adverse environmental and amenity impacts ... indicates that the site is not suitable for the proposed use," it ruled.
"The site is acknowledged as stable and its condition is manageable in its current form. As a result, the public interest justification of the proposal as a necessary rehabilitation project is not compelling."
Ms Whitbread spoke at the panel meeting, concluding by saying: "This is Sydney's rubbish that we are just expected to accept, which will destroy our lifestyle through traffic, noise and air pollution."
The panel noted that Lithgow Council had received 470 submissions objecting to the DA because of environmental risks, damage to ground water, swamps and the rivers, noise and traffic dangers with all the trucks and loss of amenity for residents on Sandham Rd.
They also repeatedly pointed out the quarry site is used as a water source during bushfire, most recently the extensive fires that destroyed many homes in Bell, Clarence, Dargan and Newnes Plateau just months ago.
Ms Whitbread said: "I'm not sure that anyone is elated, just relieved. We can't handle much more. Bushfire clean-up is only just starting three-and-a-half months on.
"Our villages will be so much stronger and better now we're through this and regrouping after the fire that caused us to lose so many of our neighbours."
She thanked all those who had helped her and the working group, including Blue Mountains Cr Kerry Brown, former Lithgow Cr Martin Ticehurst, and Lithgow council planning staff, in particular Lauren Stevens who made herself available if she needed clarification.
"Our Bell Quarry Working Group, in particular my neighbour Mrs Deidre Beckett spent countless hours reading and researching so that our group submission was informed and accurate," Ms Whitbread said.
Cr Brown said the planning panel had given the DA a "very solid no".
"This is a big win for our wilderness and community. Congratulations to everyone who came out swinging for the Blue Mountains World Heritage Area, its wild rivers and our peaceful way of life.
"Thank you to the Environmental Protection Authority for doing its job as a regulator and making a detailed submission on the inadequacy of the Environmental Impact Statement for the DA."
Blue Mountains mayor, Mark Greenhill, said he was proud that council had made a submission to oppose the plan.
"I was extremely pleased with the quality of the arguments put forward by our staff and to lend my support to their efforts.
"I want to thank the community for their organisation and for the principled way they have approached this issue. We can all be pleased that the right outcome was achieved."