The Office of Environment and Heritage is investigating reports of illegal clearing at the Iron Gates site, near Evans Head.
Plans for a large residential development on the property in the mid 1990’s led to community protests and a legal battle in the Land and Environment Court.
Approval for the development was revoked just as blocks were about to go on sale.
Environment campaigner Al Oshlack says any work on the site would be a breach of court orders.
“Besides breaking statutory laws such as clearing areas of endangered species, koala habitat… and carrying out development without approval, breaching court orders in such a way is classed as contempt of court,” he said.
“About May the 9th a fairly big bulldozer came in and they’ve cleared a huge patch of what was the previous development area.
“The clearing goes almost right along the river edge where there are some registered Aboriginal sites, and it looks like it could also have impacted on a littoral rainforest, which was actually going to be protested in the original development.”