Proposals for up to 300 new homes at Downham Market have been rejected.
The Grosvenor Partnership was seeking outline permission for the homes on farmland off the A1122 at Nightingale Lane.
West Norfolk Council granted planning permission for 170 homes at the site last summer and the Isle of Man-based developer had hoped to extend the project.
The council’s planning committee was recommended to approve the application at a meeting on Monday, despite objections in the community.
But members went against the advice of officers and refused planning permission.
Downham Town Council objected to the application following an extraordinary meeting in February, when there was a unanimous vote against the development.
A number of concerns were raised at the meeting, particularly the impact
the extra homes could have on Downham’s services and infrastructure, including drainage, schools and medical centres.
The development site would be accessed via a new four-arm roundabout on the A1122, not far from the A10 roundabout, and there were fears the new layout could worsen congestion.
Highways officials did not object to the development and, in a report to the committee, borough planning officers concluded that the site could accommodate up to 300 homes without “material harm to the visual amenity of the locality, highway safety or neighbour amenity”.