The award-winning craft brewery, which produces ciders and barrel-aged sour beers, had originally sought to build a bigger brewery, an orchard, and cellar door at its property on Millers Road.

Owners Ed and Fiona Nolle were knocked back by the City of Ballarat in February last year, with councillors voting against the proposal.

An amended proposal was considered in December, with council deciding to oppose the application through the Victorian Civil and Administrative Tribunal.

This week, VCAT returned a verdict, supporting Dollar Bill and rejecting council's decision to oppose the development and concerns from neighbours.

"The decision of the responsible authority is set aside," VCAT senior member Ian Potts wrote.

The land is zoned Rural Living, which limits what businesses and processes are allowed, however Mr Potts wrote the technical definition of growing ingredients and creating beers and ciders would meet the standards required for a rural industry, often repeatedly turning to Macquarie Dictionary definitions.

The proposed tasting room is defined as a function centre as it involves other parties booking it ahead of time - the amended plans, approved by VCAT, state no more than 10 people would attend at a time, and it would only be open 36 days a year on Fridays and weekends, and no later than 8pm.

"The principal purpose is for groups of wholesale buyers or interested groups to attend tastings and then follow up with on-line or off-site purchases," Mr Potts wrote.

"It is therefore a use that is distinguishable from cellar door sales. The applicant therefore continues to seek permission for a function centre. I have proceeded on this basis."

Car parking and amenity issues are also dismissed, while the relevant catchment management asked to move the proposed hop garden and apple orchard three metres from a pre-existing floodway on the property.

An application for an illuminated sign was rejected, but the business will be allowed to put a non-illuminated sign up.

Mr Nolle said it was exciting to be allowed to move forward.

"Much like our beers, everything good takes time - we'll just keep plodding along," he said.

"It's VCAT's job to take the emotion out of it ... and look at the facts.

"It's going to take a little while to set up, maybe a year and a half to two years to get the property where we want.

"We haven't done anything out here yet because we've been waiting for permits, we've been very reluctant to put much money into the property, because if we didn't get the permits, we'd need to relocate."

The business, technically defined as a "nano-brewery", has continued to win major Australian beer awards while working from a small part of the Nolles' shed.

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Dollar Bill was included in early proposals for the Goods Shed precinct at the station, but it withdrew as the VCAT case was still proceeding.

"Right now our focus is on meeting all the requirements and making sure we do everything right, hopefully everyone's happy with where we end up," Ms Nolle said.

"A lot will change for us, but not a lot for anyone else."

Once the tasting room and orchard is established, it may be a while before the public will be allowed to visit - the priority will be for Dollar Bill's subscriber's club members, but the "weird beers" will be available across Ballarat and at trade shows.

The City of Ballarat was emailed for comment.

The full VCAT decision can be found online.

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