Karen and Brian Bennett were running a successful Tiny Home accommodation service on the South Coast for several years before the council shut them down.
A likely tip-off from a disgruntled community member saw them investigated for potential pollution of the Clyde River, which runs through their property.
Despite producing receipts for the composting toilet a professional plumber had installed, the basis of the complaint, the ensuing battle became too costly to continue fighting.
Ms Bennett said they'd tried to do everything by the books and had run a successful side business injecting thousands into the local economy each year.
"We had a five-star rating," she said. "Now we've sold it. It's absolutely crazy they're making it so hard for people during a housing crisis."
Tallarook Tiny Home was located about 14 kilometres from the coast in Shoalhaven Council, one of the Local Government Areas to be impacted by new agritourism planning legislation coming in on December 1.
The NSW government want to make it easier for farmers to use their land for commercial purposes, including weddings and accommodation, by simplifying planning rules.
Those opposed say more visitors means more wear and tear on roads, noisy neighbours on weekends and potential degradation of the environment.
The Bennetts plan to provide accommodation on their property at a future date, once they get over the "shellshock" of the last shut down.
"There are people down here living in vans," Mr Bennett said.
"We want to build more accommodation but our hands are tied."
Mr Bennett works with a tiny homes company in Ulladulla and estimates around 400 have been built in the past four years, destined for locations right across Australia.
He said there'd be around 90 in Shoalhaven alone, with popularity booming post bushfires, when councils on the coast gave residents a two-year grace period from restrictive rules, allowing them to build temporary housing.
The Black Summer bushfires claimed 285 homes in Shoalhaven and 501 in Eurobodalla.
The housing shortage post bushfires led to a plea from Eurobodalla Shire Council mayor Mathew Hatcher in June, asking Canberrans to return vacant holiday homes to the rental market.
He said in the months after they received around 85 phone calls and more than 80 emails, many from Canberra residents offering properties.
The Eurobodalla Council provided a submission in support of the Agritourism reforms, provided primary producers had capacity to manage any environmental impacts.
"The Agritourism legislation allows primary producing farms opportunities to diversify their incomes," a spokesperson said.
"It allows farms to showcase their produce, add to the rural economy through employment, and explore options for tiny homes, tents and caravan on site with clear controls in place.
"Tiny homes have not been identified as a problem in the Eurobodalla."
Shoalhaven City Council Mayor Amanda Finlay was approached for comment but failed to respond.
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