ALH has finally won a seven-year battle to build a new Dan Murphy's liquor store in South Perth.

After being given the green light by the Liquor Commission, ALH will demolish an existing BWS and a Dan Murphy's will be built as part of a refurbishment of The Como Hotel, which is at the intersection of Canning Highway and South Terrace in Como.

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South Perth Mayor Sue Doherty has opposed the application, while the South Perth Residents Association said it is devastated by the decision.

Member for South Perth John McGrath said the intersection was too congested and the addition of a Dan Murphy's could make it more dangerous.

"The new Dan Murphy's will be bigger than (the existing BWS), will probably be twice as big" he told 9News.

"I'm very interested as the member for South Perth to see what reasons they're going to come up with for approving this.

"The local residents and rate payer's association are very concerned, they're concerned that the Liquor Commission hasn't yet given the reasons."

Chair of the South Perth Residents Association, Cecilia Brooke, said the decision is devasting and the ensuing traffic will be a "disaster".

"You have to go to the corner of South Terrace and Canning Highway, turn right and immediately right into the car park - this is going to be a bottleneck and so dangerous.

"We're devastated. There's been so much work for seven years put into this."

ALH initially received approval to demolish the current BWS on the site of the Como Hotel and construct a Dan Murphy’s store in its place in April 2015, but the City of South Perth challenged the approval in the Supreme Court of Western Australia due to traffic concerns.

There have been 51 crashes at the intersection in the past five years.

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