The refusal is due to significant visual impacts on the landscape and residents.

However, Minister for Goulburn Wendy Tuckerman said this did not reflect a holistic approach taken by the state government in planning. "There were a number of reasons that the assessment concluded the site is not suitable for a large-scale wind farm, none of these reasons are written in stone for wind farms across the Crookwell region," Mrs Tuckerman said.

Twenty-three turbines up to 157 metres high would cover an arc extending more than 10 kilometres along the main ridge line on the approach to Crookwell. There are also approximately 90 residences within five kilometres of the site, according to the DPE report. It would generate 96 megawatts of renewable energy and create 40 jobs during construction, and up to six during operation.

If the project proceeds, Renea Keith of 'Atholvale' would be able view at least five wind farms from her residence. She is relieved that the potential visual and noise impact will be lessened and that the DPE has listened to their concerns.

The dwelling on their 400-acre property would be 1.2 kilometres from the nearest turbine.

The Upper Lachlan Shire Council (ULSC) is concerned about the visual impacts of turbines within two kilometres of residences a directorate of the Development Control Plan. "There has to be set back distance of more than 2 kilometres," Upper Lachlan Shire Council, acting general manager, Andrew Croke said.

There are potential impacts on the road network during construction, and the the interference of television services, Mr Croke said.

The DPE received 107 submissions during the exhibition of the Environmental Impact Statement. The overwhelming concern in local submissions were visual impacts, proximity of turbines to residences, landscape impacts and cumulative impacts from other wind farms.

The DPE has recommended against the proposal of a $120 million wind farm in Crookwell.

On May 2, the DPE recommended against Crookwell 3 Wind Farm and referred it to the Independent Planning Commission who will have the final say.