The NSW government has bought back a six-hectare site in the Mambo Wetlands after selling the land two years ago to a private developer.

The sale in 2017 faced massive community pushback, with the site providing important habitat for Koala populations as well as other endangered and threatened species.

Environment Minister Matt Kean said the site would support the NSW Koala Strategy – a $44.7 million program to secure the future of Koalas in the wild.

Following their re-election in March this year the Berejeklian government purchased the site at a loss; originally sold for $250,000 the site was bought back at $420,000.

Mr. Kean welcomed the decision which he said was a win for the community, but Labor MP Kate Washington said the sale never should have happened in the first place.

The buy-back faced hurdles but was finally approved under the Coastal Lands Protection Scheme set up by the Liberals and Nationals in 1973.