The state government has coughed up $27.25 million to buy the historic Fernhill estate at Mulgoa in Sydney’s west, burying previous plans to allow a cemetery on the 384 hectares.

The homestead, which was listed for $30 million in 2016, exchanged close to that price last year with the Rookwood General Cemeteries Reserve Trust amid plans to expand Sydney’s burial space, given forecasts of a critical shortage within the next two decades.

However, fierce objections by the locals forced the Rookwood trust to walk away from the plan after the state government failed to give it approval.

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