A planned subdivision at the centre of an Indigenous land dispute near Caledonia, Ont., and Six Nations of the Grand River First Nation won't go ahead.

Losani Homes, a developer behind the McKenzie Meadows project, confirmed Friday that deposits to homebuyers are being returned.

Company vice-president William Liske said homebuyers with the project were notified this week that "sale agreements had been frustrated."

It's been nearly a year since a group of Haudenosaunee people began occupying the development site, arguing it is on unceded Indigenous land.

The group has maintained a presence since July 2020, despite a permanent injunction that was granted last fall and dozens of arrests.

Liske says factors behind the cancellation include the long duration of the occupation and the more permanent setup of the camp.

Skyler Williams, a spokesman for the camp known as 1492 Land Back Lane, said the cancellation doesn't go far enough but marks a step in the right direction.

This report by The Canadian Press was first published July 2, 2021.