An Bord Pleanala has upheld permission granted by Waterford Corporation to Bus Eireann to build a central depot on the city's Merchant's Quay.
The controversial development has been strongly opposed by a number of environmental and civic groups which have urged that the entire mile-long quayside should be preserved intact for recreation and amenity use.
The Save the Quays Committee lodged an appeal with An Bord Pleanala after Waterford Corporation granted conditional permission for the project in April, and an oral planning hearing was held in September.
Yesterday's decision imposes a number of conditions on the proposed development. It stipulates that the proposed bus bays shall not be used for long stay, or overnight parking of buses, and that a pedestrian crossing shall be located outside the bus station.
It requires that the design, colour scheme and landscaping shall be agreed with the planning authority in advance.
Bus Eireann will be allowed to erect only one external sign on the premises, and no advertising signs will be permitted on the bus shelters.
An Bord Pleanala also requires a minor resiting of the development to allow provision of an amenity walkway for public use along the riverside edge of the site.
In its campaign against the bus station, the Save the Quays organisation had to contend with the fact that the relocation of the bus station to a purpose-built building on the quays was included in the public transport objectives set out in the 1994 Waterford City Development Plan.
The area manager of Bus Eireann, Mr Pat Crowley, yesterday said he hoped there would be no further delays. "We want to give our customers out there what they want, and what they want is a bus station on the quay," he said.
ala had taken all the arguments into consideration. Ms Stephanie Taheny, of the Save the Quays Association, said: "We're obviously disappointed that we lost our appeal. We were never optimistic that we would win it, but we hoped that An Bord Pleanala would reverse Waterford Corporation's decision.
"The board were influenced primarily by the fact that the bus station was provided for in the development plan, and it's very difficult to go against a development plan."
However, she added that the plan was supposed to reflect the views of the people of Waterford. The association had received massive support for its campaign and therefore believed that the development plan did not reflect the views of the people about the bus station proposal.
"I think that in years to come people will realise the opportunity that was lost at this point to do something really visionary with the quays, and this decision will be a cause of great regret," Ms Taheny said. The association had earlier indicated that if the decision went against it an appeal to the High Court would be considered.