A stranger who allegedly sexually and indecently assaulted a three-year-old girl at a NSW Snowy Mountains chalet will remain behind bars for now.
David Carl Ewen's lawyer says his client faces "incredibly grave" accusations, but claims the crown case is "inherently flawed" and based on "unreliable" evidence from the girl and her mother.
Ewen, 50, appeared via audio-visual link at Central Local Court on Thursday where his barrister AJ Karim unsuccessfully sought bail.
It's alleged the girl's mother saw a man put his hands between her daughter's legs, near her thighs, when she was sitting on a couch at the Perisher Valley guesthouse on July 15.
Mr Karim said instead of immediately rushing to the aid of her daughter she asked her husband to check on the girl.
"Why would you inquire as to everything being okay if you had observed your daughter being indecently assaulted?" he said.
Ten days later the girl told her mother she'd been sexually assaulted, he said.
The girl disclosed that a man who wasn't wearing pants orally assaulted her on a stairwell near the guesthouse reception area, Mr Karim said.
He said "it is not unnatural for kids to fantasise" and "lie all the time."
Mr Karim said "police also believe that there are a number of other victims who have not made complaints," but he said this was "pure speculation."
The prosecutor said even though the girl was only three year old she gave a clear account of what happened and a good description of the man who allegedly assaulted her.
She also said the mother's reaction was not unreasonable.
Magistrate Sharon Freund said it "is not an overwhelmingly strong case but it is a strong crown case."
She formally refused Ewen bail to appear at a Queanbeyan court on October 6.