Led by Ms Brockovich, almost 250 locals claimed emissions from Alcoa's refineries in Kwinana, Wagerup and Pinjarra were making them sick.
The action was launched in Pennsylvania where Alcoa's head office is based.
Last week, the US Court of Appeals dismissed the case but Ms Brockovich and local residents say they will continue to pursue the issue.
Ms Brockovich says the lawyers will now consider their options locally.
"They will re-address what legal remedies that they will have here in Australia," she said.
"It doesn't mean that it didn't happen, it doesn't mean that anything's gone away, it just means as far as any legal strategy or jurisdiction in the US, that won't happen.
Alcoa said in a statement it was pleased with the court's decision and that its refineries were safe for employees and nearby communities".
Story from ABC News
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