Tilba Valley Winery & Alehouse (pictured) took Eurobodalla Shire Council to NCAT over a compensation claim. Photo: Supplied.
A popular winery on the NSW Far South Coast lost the compensation claim it launched against its local council after it was temporarily shut down due to concerns of contaminated water at its premises.
According to a recently-published decision from the NSW Civil and Administrative Tribunal (NCAT), Eurobodalla Shire Council raised questions about the quality of potable water used at the Tilba Valley Winery & Alehouse and issued it with an ‘improvement notice’ in November 2025.
The council said two more reinspections failed before water samples were taken from the winery on 12 February 2026. Four days later, the council told the winery that E. coli had been detected in the samples.
Escherichia coli, or E. coli, is a bacteria that can cause diarrhoea, stomach cramps and nausea.
NCAT said the council issued the winery with a ‘prohibition order’ on 17 February 2026, immediately preventing the handling of food until it received a clearance certificate.
As part of the order, the winery was told to clean its inner tanks and install plumbing works.
The winery lost seven days of trade before it was allowed to reopen on 27 February.
It took council to NCAT, seeking an administrative review of the ‘prohibition order’ as well as compensation for those seven days of lost trade.
But Senior Member Everton MacIntyre was ultimately satisfied there were grounds for the prohibition order.
“Such an order was capable of being made in the circumstances of the case, on the basis of the evidence that water used on the relevant premises failed a test for E. coli,” he said.
“I am satisfied that this is evidence that the premises in question were in an unclean or insanitary condition.”
Senior Member MacIntyre said having found there were grounds to make the prohibition order, the compensation claim must fail.
A Eurobodalla Council spokesperson said their organisation welcomed the decision, which confirmed the council acted appropriately, reasonably and in accordance with its statutory responsibilities under the Food Act 2003 to protect public health.
“Water samples collected from the premises on 12 February 2026 were tested and confirmed the presence of E. coli in the drinking water supply servicing the food business,” the spokesperson said.
“The tribunal considered the testing evidence and accepted that E. coli had been detected in the water samples. This finding reinforced council’s concerns regarding food safety risks and the need to take appropriate regulatory action to protect public health.
“Following completion of the required corrective actions, a clearance certificate was issued by council on 27 February 2026, allowing the business to resume operations.”
Tilba Winery was contacted about the tribunal’s decision, but a spokesperson said they would not be commenting.
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