The Little Road Chapel in Iona has been granted permission to extend its hours of business to 11.30pm on a Friday, Saturday or Sunday.

On January 14, the tribunal overruled Cardinia Shire Council's permit guidelines, which restricted the venue from operating for more than 30 days a year or outside the hours of 10.30am- 6pm.

Owner Matthew Eno said the extended hours would allow the business to expand.

"I expect we can get more bookings now because there are a lot of people who want to have their functions in the evenings.

"Previously all celebrations had to be finished by 6pm, which had been costing the business bookings."

He said he would like to be able to expand the number of days of operation.

"We'd like to have more days. Right now it's like one day every fortnight - but we'll work with what we've got.

Mr Eno said he had been locked in a battle with Cardinia Shire Council and neighbouring residents for 2? years, before opening in April 2008.

The issue went to VCAT in August last year. "When we first applied, we had objections from neighbouring farmers and the council didn't feel it was in keeping with the rural aspects of the area," Mr Eno said.

"There were concerns about increased traffic and loud music, but our nearest neighbours are 500 metres away."

VCAT senior member Jeanette Rickards ruled that given limitations on the use of the site, an increase in operating hours would not have detrimental effects.

"Given the limitation of no more than 80 people, I do not consider that the increase in operating hours will have an unreasonable impact on the surrounding area."

For more details on the venue, visit www.littleroadchapel.com.au