Tweed Shire Council councillor Dot Holdom says the operation at Cudgen was not an appropriate location for a poultry farm.

"There were a myriad of issues across the range," she said.

"Yes certainly, there were concerns with regard to human health, from those that live around it, but we had water issues, none of the land was suitable to do this in regard to the buffers, in my opinion."

ABC reports that the farm at Cudgen was operating illegally when the council started to receive complaints in July last year from neighbours about the noise, odour and contamination of local water supplies.

Council says the site was set up without a DA, and despite repeated advice from its staff that the farm would need one to operate, the council was forced to take the owner to the NSW Land and Environment Court which ruled it was operating illegally and ordered it be shut down.

In March, the owner was found to be in contempt of court when no action had been taken to dismantle the farm and cease operation.

Council says it will seek to recoup legal costs of about $120,000 following disputes over the illegal operation.

But council's director of planning Vince Connell says the history of the situation had no bearing on the DA decision, which was put forward by an applicant other than the owner.

He says was considered solely on its merits and without prejudice.