However, it was noted the ruling does not mean all activities planned by protest group Rising Tide will be lawful.
The group launched an 11th-hour legal challenge to the exclusion zone which formed part of efforts to prevent the planned blockade of the world's biggest coal port.
Flotilla Launch at Horseshoe Beach for the 2024 People's Blockade! — RisingTideAustralia (@RisingTideAus) pic.twitter.com/f6QFYMlpAnNovember 21, 2024
The exclusion orders were overturned following a hearing in the NSW Supreme Court hearing roughly an hour before they were due to come into effect at 5pm on Thursday and continue until 8am on Monday.
The group had initially planned to block the major coal export channel for 30 hours, as part of a multi-day "protestival" that will also feature live music acts.
According to Rising Tide, the scrapping of an exclusion zone means protesters were able to enter the water off Horseshoe Beach, near the mouth of the harbour, to conduct a flotilla without the impeding the shipping channel.
Transport for NSW had issued the exclusion order on Friday night, imposing a maximum $1100 fine for anyone entering the water and $3300 fine for anyone in the vicinity who fails to comply with directions.
Rising Tide's lawyer Felicity Graham told Thursday's hearing the purpose of the laws under which the exclusion zone was imposed is to protect public safety during "special events" on waterways, such as yacht races or fireworks barges, not ban them.
Justice Sarah McNaughton agreed with the group's submissions and ordered the exclusion zone be scrapped, however she noted that would not mean all of the activities planned by organisers would be lawful.
"The plain wording of the section is not such that it can prohibit the special event that it purports to be regulating," Justice McNaughton said.
A court ruling on November 7 deemed a planned floating blockade an unauthorised assembly. (HANDOUT/GREENPEACE)
The same court ruled on November 7 to deem the planned floating blockade an unauthorised assembly, leaving protesters liable for arrest if they obstructed access to the port.
The protesters' application named Transport Minister Jo Haylen as defendant and the 21-year-old Rising Tide organiser Alexa Stuart as the plaintiff.
Responding to questions from the ministers' barrister David Hume, Ms Stuart agreed Rising Tide promotes civil disobedience and said it is possible some of those at the event may break the law with the intention of drawing more publicity to the cause.
"I would say it is likely," she said.
In a statement released after the ruling Ms Stuart said the government's attempts to silence free speech had failed - and people power prevailed.
WE WON! � The Supreme Court of NSW has ruled the NSW Minns' government's draconian exclusion zone over Newcastle harbour is invalid.— RisingTideAustralia (@RisingTideAus) The zone had been established in an attempt to stop Rising Tide's People's Blockade of the world's largest coal port. pic.twitter.com/ziJNI3JnDgNovember 21, 2024
"This outrageous exclusion zone was a massive overreach, from a government who would rather criminalise swimming and paddling in Newcastle's public waters than allow people to peacefully protest against its climate failures," she said.
Premier Chris Minns argued the orders being scrapped were not a sign the government had overreached in its approach.
"We don't want to stifle protests, we want people to be safe," he said.
He urged those taking part on protests over the weekend to do so safely and not place themselves in harm's way.Â
"Think about emergency services, particularly NSW Police, who are just doing their job trying to keep you safe," he said.
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