The long-planned 8,700-unit Villages at Lakeview housing development near the San Jacinto Wildlife Area has been dealt another setback, after the California Fourth District Court of Appeals struck down the project’s environmental report. First envisioned in the early 2000s, the project, located southeast of Moreno Valley, has been delayed due to concerns about its size and potential harm to wildlife.

The Press-Enterprise reported that an attorney representing the Center for Biological Diversity, which filed the lawsuit, praised the ruling, claiming that the “new city” would not only impact an ecologically important area but require massive water use that flies in the face of 21st Century planning.

Project developer Lewis Group of Companies has already reduced the scope of the Villages at Lakeview project, plus would provide an open space barrier between the development and the wildlife area and include drought resistant landscaping and other water conservation measures.

The court ruled the environmental report lacked details about a special fund dedicated to the wildlife area and criticized the project’s projected water usage. Riverside County said it will thoroughly review the ruling to determine next steps.