The Save Our St Heliers campaign group says a decision to allow the demolition of three art deco buildings in Auckland is disastrous for the city's heritage.
The 1930s Mission-style buildings on Turua Street in St Heliers are to be knocked down to make way for a business and retail centre, but opponents say it will ruin the character of the village.
The group was trying to get the work halted while the heritage status of the houses was determined.
But an Environment Court judge ruled on Thursday that there is no evidence they should be protected.
A witness at the demolition site says bulldozers have resumed their work on Friday.