Braidwood became the first town on the east coast of Australia to be heritage-listed two years ago, but the demolition of an 1850s building has raised concerns about the level of protection over its historic streetscape.
Experts believe the single-storey wooden building in the main street of Braidwood was once used by pioneering Chinese family the Nomchongs, who established businesses in the region during the 19th century gold rush.
It is understood Palerang Council, with the approval of its heritage officer, allowed the building to be demolished earlier this month to make way for a supermarket storage shed.
The approval appears to have been given because the Local Environment Plan listed the incorrect address for the building, leading to an assumption it was not heritage-listed. Locals believe a proper audit of historical items has never been done.
Canberra historian Dr Barry McGowan, an expert on Chinese heritage in southern NSW and the Riverina, said the loss of the Braidwood building was appalling.
''It's definitely part of the Nomchongs' extensive business complex they had there for a good 60 or 70 years. We're not exactly sure what use the building was put to, but nevertheless it was owned by them,'' he said. ''The Nomchong family were of such great importance to not only Braidwood but the region, with business enterprises stretching to Goulburn and the coast.''
Dr McGowan said at the very least an assessment of the building's heritage value should have been done before the demolition.
''It really is of concern. Something has happened that shouldn't have happened,'' he said. ''Braidwood's industry to a large extent is its heritage and the fact that people come to look at the heritage ... they don't want to look at vacant lots where buildings have been knocked down.''
The Nomchongs, who still run businesses in Braidwood, did not own the building at the time of its demolition. The remains of the building were carted to the local tip.
While Dr McGowan had asked Palerang Council to preserve the ruins, it's understood they were bulldozed in recent days.
NSW Planning Minister Frank Sartor announced in March 2006 that Braidwood and its surrounds had been listed on the State Heritage Register as a ''rare surviving example of Georgian period town planning, dating from the 1830s''.
NSW Department of Planning said the integrity of the main street, Wallace Street, as a fine collection of 19th century buildings, made it particularly significant. It came at the end of split between factions for and against the heritage listing.
Mr Sartor tried to assure residents at the time the listing would not inhibit Braidwood's economic growth, saying most development applications would need only council approval.
Calls to Palerang Council over the past two days were not returned.
Its Development Control Plan states that the first objective of the main street commercial area is to preserve the historical character of the precinct's townscape and the contributory and individual significance of the individual heritage items within it.
A spokeswoman for NSW Planning Department's heritage branch would not comment on whether it was concerned about the building's demolition and would only say it was in talks with Palerang Council.
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