Councillors voted unanimously against the planning application this week, referring to the 17 objections - mostly from Beechworth neighbours worried about the potential noise and behaviour of patrons drinking until the proposed 7.30pm closing time. There were also 41 submissions supporting the application.

The whisky bar and brewery was approved by Indigo Council last year with limited business hours.

Cr Larry Goldsworthy said a proposal to hold 26 separate events during a 12-month period was too much.

"If you heard anything from the neighbours in terms of the last application, you would know that they are very concerned about this," he said.

"I don't think your business has run long enough and that you have completed enough of what is required of you."

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But Billson's owner Nathan Cowan was urged to not give up by councillors including mayor Bernard Gaffney.

"You purchased a rundown heritage building and you breathed new life into it, it's become a tourist attraction for this town. It's unfortunate this won't get up," he said.

"It will be a great success story no doubt and we're grateful for your investment."

Cr Jenny O'Connor said the brewery had become a venue visitors raved about.

"I really commend what you're doing there, but I think this application was an overreach," she said.

"I think if we can find a way to support you in your business, taking into account the context of what it is and being respectful of the people that live in that area, I think there is a way forward."