It's the first decision of its kind in New York State. A judge rules the Town of Dryden can keep its hydrofracking ban. Our Tamara Lindstrom has more on the decision and what's next in the legal battle.

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TOMPKINS COUNTY, N.Y. -- It sounds like the latest David versus Goliath. A small town takes on a gas drilling corporation and wins.

Mahlon Perkins, Dryden Town Attorney said, “I think it's a well reasoned decision, well researched. And I think it's going to withstand any kind of an attack on appeal."

On Tuesday, a state Supreme Court judge upheld the town of Dryden's ban on hydrofracking, a victory for those who oppose gas drilling.

Helen Slottjel, of the Community Environmental Defense Council said, “This decision is a green light for communities around the state that are interested in trying to protect their character and their environment from the negative impacts of unconventional gas drilling."

Denver-based Anschutz Corporation sued Dryden in September, arguing the municipality didn't have the right to regulate the industry. But Judge Philip Rumsey found the town does have the right to create zoning laws that regulate land use.

“He interpreted the Oil, Gas and Solution Mining Law consistently with the way the Court of Appeals has interpreted the Mine Land Reclamation Law, which contains similar provisions providing local authority,” said Perkins.

"The fact that you can't basically enact environmental regulations or other controls on industry doesn't mean you don't have your zoning power,” said Slottjel.

The ban does amend local zoning laws to prevent gas drilling and exploration, but Perkins points out the change is in line with what the town rules have been all along.

"The town's position it is has never allowed heavy industrial uses under its zoning ordinance. And what this amendment to the zoning ordinance did was clarify that included in the definition of prohibited uses was the use of land for natural gas exploration and extraction,” said Perkins.

Anschutz reports the company has invested $5 million in the town, and leased upwards of 20,000 acres.

Figures that point to a likely appeal, and another battle ahead.

Thomas West, the attorney representing Anschutz, said an official decision has not yet been made, but the company will likely file a notice of appeal. West said he's confident the company will ultimately prevail.