A fast-track bid for up to a thousand homes at Pegasus Golf Course has been knocked back - but questions remain over why, and what happens next.

Infrastructure Minister Chris Bishop has declined Wolfbrook Properties' application.

The Pegasus Residents' Group is cautiously celebrating the decision.

President Matt James says it's unclear why the application was declined, and they're moving with caution.

"There is no clarity. I have suspicion, but it's purely a personal opinion - the key thing to fast-track is you need to be able to demonstrate national significance and regional economic benefit, and I don't think a development of this nature would have done that."

LISTEN ABOVE