THE Port Campbell Community Group has lost its fight to stop a 103-lot subdivision on top of the town's fragile headland.
The Victorian Civil and Administrative Tribunal backed Corangamite Shire's council decision to allow the developers of the Southern Ocean Beach House to carve up the site before construction begins.
For several years the Port Campbell Community Group has opposed the 97-room motel complex, fearing it would accelerate the collapse of the headland.
Michelle Grainger, the council's building and statutory planning services manager, said VCAT believed the council's conditions to allow the subdivision would safeguard the site.
A permit to allow the development was granted last year, subject to a geotechnical assessment of the area.
Ms Grainger said the VCAT order did not change the original permit's conditions.
"The existing checks are still in place ," she said.
The council allowed the subdivision in July .
Port Campbell Community Group secretary Dr Marion Manifold said at the time councillors should wait until the complex was finished.