Victorian Planning Minister Richard Wynne said changes to planning laws about to be introduced mean they could force the developers behind the demolition of Melbourne's Corkman Irish Pub to "replicate the site immediately prior to demolition".
The heritage listed 159-year-old Corkman Irish Pub, previously known as the Carlton Inn, was illegally demolished on October 15.
Its owners had no building or planning permits.
Before the demolition, the developers commissioned an architect to draw plans for a 12-storey tower on the site.
Building waste and rubble, including asbestos, from the historic pub were later found dumped in Cairnlea.
The public outcry over the illegal demolition and asbestos dumping has put pressure on the government and its agencies to act.