The riot is described as a turning point in unionism and industrial relations, and is known as Australia's most violent industrial conflict.

Miners had taken a stand, refusing to accept a pay cut, resulting in rolling stoppages and strikes. In February 1929, workers were told to take the pay cut or lose their jobs, and a couple of weeks later they were locked out.

The government brought in "scab labour", a move which sparked plans among the miners for a peaceful protest.

Those plans went awry. A signal was allegedly given to police, who were badly outnumbered, to fire shots - into the air or into the ground, but a large number of miners were directly hit by the gunfire. Among them Wally Wood, who copped a bullet in the throat, and Norman Brown who was shot in the back and died.

Railway enthusiasts had hoped to pay permanent tribute to that event with a railway museum. But as the dust begins to settles on a David and Goliath Supreme Court battle between the Hunter Valley Railway Trust and the developers behind North Rothbury's Huntlee Estate, it is becoming clear that the North Rothbury Riot railway line is history.

Its "permanent removal" is a necessary part of the next stage of its $1.5 billion housing development. according to Stephen Thompson, project director for the Huntlee housing estate.

"By way of example, in the next 12 months, it is anticipated 225 lots in Huntlee will be sold, at least 20 per cent (but likely more) of these lots will be on land that requires infrastructure which is impacted by the Branch Line," Mr Thompson said in an affidavit filed with the Supreme Court.

The relevant parcel of land is listed with the National Trust of Australia. In an associated report it says the railway track could be Australia's oldest operating colliery branch line.

It also describes the land as valuable to "the many families of Branxton, Cessnock, Kurri and other mining centres who are descendants of the Rothbury rioters".

The historical significance of the site and remnants of the Rothbury Colliery coal mine has been raised repeatedly in the Supreme Court before Justice Anthony Payne in what has been a complex, and exhaustive legal exercise.

The developers have won their case, and the land will be handed back to them - the only thing left to decide is how long the occupants have to remove themselves and their belongings, including the infamous Picnic Train.

This section of the Huntlee Estate was once the hub of a $10 million heritage railway collection, made up of 100 carriages and 10 steam, diesel and electric locomotives.

The outcome of the case will be binding for a number of not-for-profit organisations which have locomotives, carriages and/or spare parts stored in NSW State Government-funded sheds, which will also be considered fixtures and become the property of Huntlee.