An application to operate commercial flights, including helicopters, out of Katoomba Airfield has been rejected by the state government.
The department of planning, industry and environment issued a short statement earlier this week, saying that it had rejected the plans of FlyBlue, run by Derek and Floyd Larsen.
"An application by FlyBlue for a lease to operate a commercial airfield, including helicopter flights, at Medlow Bath has been refused, after failing to provide a valid planning pathway - a requirement under the Environmental Planning and Assessment Act 1979.
"The company's temporary licence to access the site will also be revoked and it will be required to vacate the site within 28 days."
Stephen Caswell, from the Medlow Action Group, said: "Whilst we appreciate that some commercial interests may be disappointed with the ... decision, MAG believes it is an emphatic win for residents and businesses concerned with noise pollution and impacts on the environment and waterways of the Blue Mountains."
The decision was greeted with delight by the Blue Mountains Conservation Society, whose president, Tara Cameron, said she was "thrilled" at the news.
She also gave credit to those who campaigned against the proposal.
"None of this could have been achieved without the incredible support and commitment of both the local and broader community in raising awareness, with petitions, submissions, letters, phone calls and determination, of the importance of our World Heritage National Park," Ms Cameron said.
The Larsens have been contacted for comment.