A BUFFER zone of 20 metres will stand between 400 new houses and the West Wallsend Butterfly Caves, which have been officially recognised by the state government.
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Sugarloaf Action Group president Anne Andrews said the community employed a "never give up attitude" to have the Aboriginal place recognised.
Ms Andrews said it was a significant victory, after years of campaigning with Margaret Harvey from the Buttaba Land Council to try and scale back new housing developments and save the town's Aboriginal and mining heritage.
The Joint Regional Planning Panel approved the 404-lot housing development by Hammersmith Management in July last year.
But late last month, NSW Environment and Heritage Minister Robyn Parker officially declared the spot as having special significance to Aboriginal culture.
It will now be be known as "Butterfly Cave Aboriginal Place", with a buffer zone away from the new housing.
Under the ruling, activities that "may cause harm" to the Butterfly Caves, such as the erection of buildings, subdivisions and clearing of native vegetation, would have to approved by the NSW environment and heritage minister and NSW cabinet.
Ms Parker agreed with the Sugarloaf Action Group that the area was used as a traditional place of meeting and ceremony by Awabakal women and continued to serve as an area for the education of young girls by female elders.
It is valued for its abundant bush-food resources and natural beauty, as well as its seclusion because it is hidden by a rock platform above.
The developer has also agreed to promote local Aboriginal culture by giving the new streets Aboriginal names.
■ A ceremony welcoming the Butterfly Cave Aboriginal Place will be held at Sugarvalley Neighbourhood Centre this Saturday, June 15, from 11am. All are welcome.
