The developers of a proposed dump near Camden are taking a step back to review the controversial proposal.
The Downes family recently lodged plans to build a new resource recovery facility and landfill under the name Claron Consulting Pty Ltd.
Generations of the long-term local family have owned the farm at 217 Brownlow Hill Loop Road, Brownlow Hill since the 1800s.
The 15-hectare site was expected to be used as a tip which would receive, handle and process construction and demolition waste, plastics, tyres, glass, contaminated soils, composting and green waste.
However the Downes family has announced that it will review its proposal for a resource recovery facility at the property due to community concerns.
Max Downes, speaking on behalf of the family, said the family acknowledged and regretted the concern caused.
"This was unintentional and we recognise the process should have been much better," Mr Downes said.
"We have been local residents since 1859.
"We care deeply about the historic property, the local area and community and are committed to being good citizens.
"Our neighbours and friends in the community are extremely important to us, as is the sustainability of our region."
Mr Downes said the family was facing changing times and needed to diversify their operations in order to maintain a farm in the Sydney basin.
"The recent campaign by supermarkets to drive down milk prices, and high feed prices due to drought, have resulted in the closure of dairy operations at Brownlow Hill after more than 140 years of continuous operation," he said.
"We have more than 120 hectares - and more on the way - locked up in bush regeneration or biobanking programs, which shows our commitment to sustainability and the environment.
"This is the context in which we have been working on our proposal for a sustainability-focused recycling facility operating in an existing sandstone quarry void."
Neighbouring resident Simon Peacock told the Advertiser last month the Brownlow Hill was not suitable for industrial development.
"We don't have the infrastructure for this kind of thing," Mr Peacock said.
"Our roads and power network would struggle to cope - and there is no water going to that site currently.
"People are concerned about the koalas in this area and I think this would be the final nail in the coffin for them."
It is estimated the proposed dump would process up to 420,000 tonnes of waste each year.
Approximately 300,000 tonnes of the processed waste would be recycled and 120,000 tonnes would be used to fill the existing quarry void at the site.
The Downes' also proposed that the dump would operate for 24 hours a day, seven days a week.
"Having discussed the concerns of a number of local stakeholders, we will now take some time to review the planning proposal very closely," Mr Downes said.
"This affects our future on our family land and we want to get this right.
"As an immediate step we are engaging with the Department of Planning, Industry and Environment to listen to its issues and requirements in response to the proposal, which is still at a very early stage.
"We have also written to Wollondilly Council to confirm this approach and will seek to update the council soon.
"We are committed to engaging closely with the community and all relevant stakeholders as soon as possible, and appreciate the need to do so in a way that is thorough, transparent and inclusive."
Wollondilly Council is not the consent authority for the proposal.
It will be assessed by a local planning panel.