By KRISTEN LIPSCOMBE

The Williams Lake Conservation Co. has lost its third bid to protect a chunk of land between Purcells Cove and Spryfield from rezoning that could lead to large-scale housing development, attracting 2,700 people to the area within 20 years.

The Nova Scotia Utility and Review Board outlined its reasons for dismissing the Mainland South community group's appeal in a 60-page report.

The group argued that a pristine slice of environmentally sensitive land between Colpitt Lake and MacIntosh Run never should have been changed from a holding zone to a residential zone in March 2003.

The group said the rezoning will allow Kimberly-Lloyd Developments to proceed with its plan to build 870 housing units in the 60-hectare area, creating significant environmental distress and dramatically increasing traffic flow.

The area is composed mainly of trees, marsh and rock and is located between Herring Cove Road and Williams Lake.

The review board upheld Chebucto community council's original 2-1 split decision to allow the rezoning. Community council still has to vote on the actual development agreement.

Kimberly-Lloyd general manager Rob MacPherson said construction could start in late 2005 or early 2006.

"We're looking at minimizing the impact of the site by developing a portion of it and retaining quite a large percentage as conservation," Mr. MacPherson said Monday, adding that the development would be transit-friendly.

But Andrew Ross, president of the Williams Lake Conservation Co., isn't convinced and said the group will discuss its next step in questioning the approval process for development.

"The problem is the scale and type of development that has been proposed is the kind that will basically clear cut and blast through the entire area," he said. "We're not saying that development can't happen . . . but it's to make sure that what's going to happen is the best that it can be for the community."