Council last week voted 5-4 to rescind its 7-3 endorsement in December of a draft climate change policy.

Cr Lisa Matthews was absent last week and did not vote.

The policy included building restrictions on land identified at risk of sea-level rises.

Opponents criticised the restrictions for dramatically increasing costs of building on properties believed vulnerable to flooding, and threatening land values.

The draft policy was placed on public exhibition before Christmas for a period due to end on February 15. The rescission means the draft policy has been downgraded to a discussion paper, which will remain open for public submissions indefinitely at this stage.

"It's not a victory," said Cr Best, who with Crs Doug Eaton and John McNamara submitted the successful rescission motion and had voted against the policy from the outset. "It's a stay of execution, just waiting for the community's voice to be heard; otherwise this policy will yet go forward. People power must come to the fore."

Cr Best added: "This is the most significant issue in my 16 years on council."

Mannering Park residents welcomed the decision after complaining they were not consulted about the policy's formation despite living in an area identified as being at substantial flooding risk.

"The outcome was good," said Mannering Park precinct committee president Rob Regnis.

"It's back to square one and they're going to liaise with the community."

Real estate proprietor Tracey Maguire had taken council to task for trying to formalise the policy "under the radar" over the Christmas break when many people were on holiday.

"Nobody up here knew about it [the policy]. No one had time to protest," she said.

"At least now I've got some time to do what I feel obligated to do and let people know so they can comment."