Upper East Siders have lost another round in their battle against a new sanitation facility.

In a decision released yesterday, Manhattan Supreme Court Justice Michael Stallman tossed out the latest challenge to the marine transfer station the city plans to build at East 91st Street off the FDR Drive.

Stallman rejected an argument by Assemblyman Adam Clayton Powell IV and a group of local residents who said the station — scheduled to operate 24 hours a day, six days a week — would interfere with the nearby Asphalt Green recreational complex and the pedestrian walkway along the East River.

A challenge to the state’s permit for the transfer facility remains before construction can begin.