HALIFAX — Private commercial trash haulers in Halifax will not be allowed to dump their loads at cheaper landfills outside of the city.

Nova Scotia Appeal Court ruled in favor of Halifax Regional Municipality, deciding that the city was within its rights to pass a bylaw restricting the movement of municipal garbage, reports Canadian Press.

The city stood to lose up $4 million per year in lost tipping fees if trash truckers would have been permitted to use more cost-effective sites to dump commercial waste.

To prevent the practice, the city it passed a bylaw, which carrier Ed DeWolfe Trucking took to court and won. The company argued the city acted outside its limits by passing the law.

However, Justice Thomas Cromwell later overturned that decision on appeal. And the Nova Scotia Appeal Court upheld it this week.

— with files from Canadian Press