Plans for 195 new homes at the former Camelot Theme Park site in Charnock Richard were thrown out at a packed council meeting.
Members of Chorley Council voted unanimously to reject the proposals from developer Story Homes which also included an employment area.
Critics of the scheme said they opposed it because it is on greenbelt land and there was no supporting infrastructure for a doctors clinic, school and roads.
Following the meeting on Tuesday, March 27 Story Homes’ development planner, Siobhan Sweeney said the builder was “disappointed” with the outcome.
She added: “Our high-quality scheme would have complemented the existing character of the village. Our proposals would also have helped Chorley Council boost the supply of new homes and would have contributed to the supply of affordable housing, of which there is a shortage in the area.
“In addition the proposed development would have had a positive impact on the local economy by providing local contractors with opportunities to tender for work, with knock on benefits for local supply chains and other local businesses and services. Further benefits would have also included contributions to local education, public transport and significant open space.
“Going forward Story Homes will consider its options in respect of development proposals for this site.”
Ward coun for Chisnall Alan Whittaker said: “I was very gratified by the decision for the 200 plus residents who attended. This was the second attempt by Story Homes to get something on the site. The first one was refused as was this one for very good reasons - no infrastructure, GPs, schools, roads, green belt, unsustainable. Let’s hope that the third one, if and when it arrives, will be more realistic.”