The court's decision to uphold the proponents' appeal to convert a residential dwelling into a drug and alcohol rehabilitation centre was given on April 2 after Wagga City Council rejected the application in July, 2017.

The premises at 199 Gurwood Street, often referred to as 'Millies Guesthouse', will be converted by Debgar Holdings, the proponents, into a post-detox facility to be known as the Riverina Recovery House.

In the decision, court commissioner Michael Chilcott said the evidence showed the need for the rehabilitation centre.

"[It] will be of benefit to the community of NSW, including the community of Wagga Wagga," Mr Chilcott said.

"I encourage residents of the area around the RRH, and of Wagga Wagga more generally, to view it, and its future clients, with compassion and to provide support to this facility and its work.

"I am confident that the community, including those residents living in the vicinity of the RRH, will respond in this manner."

The development will result in the building comprising 13 bedrooms (12 guest rooms and one carer room); bathrooms, including ensuites and shared facilities, a communal kitchen, a laundry, communal living area and dining area, therapy rooms, an office and two on-site car parking spaces.

Debbie Cox, director of Debgar Holdings, welcomed the news, saying it was "a long time coming".

"It's been pretty tough," she said.

Mrs Cox, who supported a loved one through drug recovery, said the process "has all been personal, really".

"I believe that these facilities are so needed because the waiting lists for each individual facility around the state are so long," she said.

"Some are up to 12 months and if you've made the decision to get well and then have to wait 12 months, it's huge.

"It can be a matter of life and death.

"I just know some who can't wait that long - they feel depressed because it seems like there's no help, it can be sad."

Asked about the plans moving forward, Mrs Cox said that while it will be about four-to-five months before the centre becomes fully operational, they had already started works.

"All the documentation that we need is on track as we speak," she said.

"There'll be some repainting and re-flooring, as well as furnishing.

"Then we'll have to get staff, which is going to be the hardest part."

In addition to health professionals, the centre will seek a house manager and administrators.

The Gurwood Street site was not the initial choice for Mrs Cox and her husband, Garry.

The couple initially had a site in Lake Albert, but they decided to forgo it because it was not central to those who may need help.

"I pushed forward with this because I feel it's important enough as it was permissible in this house in this area," Mrs Cox said.

"We're not blurring the lines in anyway.

"Everywhere we went around town, we'd have a hurdle."

During the appeal process, major issues of contention included community safety, proximity to licensed venues, potential amenity impacts from facility operations, potential impacts of client lapse and relapse on surrounding residents, the facility's management plan and effects on property values.

The approval of the facility is subject to conditions, including working with Wagga police and the NSW RFS to prepare safety-management and fire-management plans.

Mrs Cox said she was open to talking with residents about the facility to allay their fears.

"I want to stress to the residents here that I'm not their enemy," she said.

"We would like to integrate with the community and the residents here so we encourage them to communicate with us.

"The residents who'll be coming here won't be using drugs.

"It's a clean house and they've [clients] made a resolve to get well."

Wagga mayor Greg Conkey said that when councillors rejected the application, it was due to the potential amenity impacts from facility operations, rather than any planning regulations.

"The decision [by the court] has some requirements and one of those is that they must liaise with police on a regular basis concerning their activities," Cr Conkey said.

"I can understand the concerns of some of the residents, however, the commissioner has ruled that they must keep in touch with police and comply with a number of other standards as well.

"Hopefully that will address the concerns residents have."

Gurwood Street resident Joseph Magro, who has lived there for about 50 years, said that consultation should have occurred with surrounding residents before the proposal was submitted.

"I think they should've told people their intentions before they bought the place," Mr Magro said.

"It should have been in a place near other medical centres, not in the heart of a residential area.

"It's not just Gurwood Street, it's the whole neighbourhood — one neighbour sold his house and got out.

"There are young kids across the roads and it could be a bad influence on them."

While Mr Magro, 86, has concerns, he said that he will wait and see how the facility operates.

"I don't like to judge them [rehabilitation clients] because it's not my place to do so," he said.

During the appeal hearing in Wagga Courthouse on February 12 and 13, eight residents made submissions about their concerns and one resident spoke about the benefits of the Gurwood Street rehabilitation centre.

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