Australia's largest retail drinks network has been knocked back for a second time in its legal bid to open a liquor store in the regional Victorian town of Daylesford.

After more than three years of heated contention from a group of residents, it may be the end of the line for the company behind the proposed Dan Murphy's liquor store.

Endeavour Group first made its application to the Victorian Liquor Commission in July 2022, which later refused the licence on the grounds it "would be conducive or encourage harm, specifically to minors".

The company challenged the decision in the Victorian Civil and Administrative Tribunal (VCAT) in 2024, which on Tuesday upheld the liquor licence refusal.

The ABC understands the only option left for Endeavour Group is to appeal in the Supreme Court.

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