Arnold Murgha was sentenced to three months rehab and three months home detention after being caught with a case of wine.
"Is that discrimination or what?" the Aboriginal elder from Yarrabah, near Cairns, told AAP.
"Who gives them the right to tell us how much we can drink?"
Booze is restricted to one carton of light beer or one bottle of wine per adult in the community under an Alcohol Management Plan (AMP) introduced in 2006.
The High Court on Wednesday ruled AMPs in 19 indigenous Queensland communities do not breach national and international racial discrimination laws.
Mr Murgha, 58, disagrees with the court's decision.
"It's racism because you can go over the boundary line and drink whatever you want and come over this side and you're breaking the law."
Mr Murgha says he drinks moderately and had been stocking up so he didn't have to drive to Cairns for each bottle of wine.
The introduction of AMPs has led to a rise in the number of young indigenous people with criminal records, he says.
"Some have never been in trouble with the law in their life," Mr Murgha said.
"And now they've got criminal records just for drinking grog."
Mr Murgha, who has lived in Yarrabah his whole life, says alcohol isn't the problem in the community, it's the lack of jobs.
About 4000 people live in Yarrabah and it is estimated that 75-85 per cent of the adult population is unemployed.
He says before the work for the dole scheme was scrapped in 2006 most people in the town were employed doing maintenance work and cleaning.
"Now our town looks dirty when it used to be clean," he said.
"Most people haven't got a job here, so there is nothing else to do [but drink]."