A major Aboriginal health service has launched legal action against the NT Liquor Licensing director over the approval of Darwin's first Dan Murphy’s store. 

Danila Dilba - one of Australia's largest Aboriginal health services - has filed a case in the Northern Territory Supreme Court against the NT Liquor Licensing director and Woolworths Group; Dan Murphy’s parent company.

It comes after Liquor Licensing director Philip Timney approved Woolworths' latest proposal for the liquor outlet last year, opening the gate for the NT's largest liquor store.

Danila Dilba chief executive Olga Havnen said the group must protect the community. 

“I think we have to use every available means to try and stop the development of this particular takeaway outlet,” Ms Havnen said.

“As people in Darwin would know, we are already confronted with a whole range of alcohol-related harms.”

Danila Dilba’s lawyers are asking the court to consider whether community views were properly considered in the approval. They will also question whether the Liquor Licensing director actually had the relevant power to make his decision.

It comes after the NT government rushed through new laws to fast-track a decision on the Dan Murphy's application after Woolworths had failed numerous times to get approval.

The new laws subverted the independent NT Liquor Commission, whose job it was to consider whether applications are in the public interest and assess their community impact.

The new laws also removed the right to review the Liquor Licensing director's decision at a tribunal, forcing opponents to go to the Supreme Court.