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Thirsty Liquor applied for a licence earlier this year which was met with staunch opposition from locals, with 93 submissions made to Hurunui District Council's licensing committee.
One of those opposed was Amberley School principal Simon Green, who said alcohol-related issues had become significantly worse in the town over the past four years.
"Children come to school and say their parents had been drinking the night before and couldn't bring them to school, make their lunch, or were still asleep when they left, those sorts of things.
"There's a Super Liquor at Countdown which stocks beer and wine and then pubs and restaurants that also sell it, so although it's not the main reason we are opposing it, there is already an ample supply in town," Green said.
A three-day hearing was held in September for people to voice their concerns.
The Hurunui District Licensing Committee sided with the submitters, and declined the application for the store.
The committee's ruling stated there would be "more than a minor impact (reduction) on the amenity and good order of the locality" and that alcohol-related harm would not be minimised.