The Docks, a  Toronto waterfront entertainment complex, has lost its liquor licence after complaints of excessive noise from nearby residents. But the fight's not over yet.

The club will appeal the Alcohol and Gaming Commission of Ontario ruling to Ontario's Divisional Court and will seek a stay of the decision to allow it to stay open in the meantime, lawyer Nicholas Macos said.

The typically crowded dance floor at the Docks nightclub may shrink without liquor flowing freely.
(CBC)

In a 45-page report released Monday, the commission said it had no reasonable alternative since the "volume and hours of music has not abated for nearly a decade." It heard from 46 witnesses over 26 day in 2005.

The decision was applauded by a group of Toronto Islands residents, who have long complained about being kept awake by racket from the Docks.

"To be able to go through this process, to be heard and have this result, it's very satisfying to know that the board heard us and made such a justified decision," said island resident Vivian Pitcher.

Located on the eastern side of the Toronto Harbour, the large club hosts up to 50 live concerts a year, with as many as 30,000 patrons visiting a week in the summer.

The fight over noise has raged between club owners and island residents for years.

The club is located less than a kilometre across the water from 250 households on Ward and Algonquin islands, and residents have long complained that the club is a constant source of noise.

The Docks claims on its website that there was no finding of misconduct by the club and that the commission concluded the establishment is well-managed.

Macos said the club owners were surprised by the decision, saying there had been no complaints this year.

He said the city and island residents rejected attempts to co-operate on noise level, instead taking a "winner-take-all strategy which succeeded for them in this decision."