Planning chiefs have thrown out an application for new homes and a community centre, which divided a village.
Gregson Green Community Initiative wanted permission for 75 homes on a field off Daub Hall Lane, Gregson Lane, which would pay for a new £1.2m community centre.
The proposals split the village, with more than 1,100 people signing a petition objecting to the development and 237 signing a petition in favour.
South Ribble's planning committee decided in favour of the opponents at a meeting on Wednesday evening.
It was decided that the houses would constitute "inappropriate development in an area of Protected Open Land", and "would result in unacceptable urbanisation of the area as detrimental to the character, appearance and openness of the Protected Open Land and extended area."
It was also noted that the proposal failed to make adequate provision for affordable housing and that the material benefits associated with the proposed community centre did not outweigh the harms identified.
Members of Facebook group Keep Gregson Green, said they were now keen to work with the Gregson Green Community Initiative in order to resolve the community divide.
A statement issued by the group read: "From the outset we have stated a community centre can be built without compromising our green space and full intend to ensure this happens.
"Since our campaign started we have unearthed many locals who have knowledge, talent and experience from fundraising to architects, builders, solicitors, planners etc who are all determined to put the same effort in to raising funds and building a new community centre.
"We will be contacting the GG committee to offer help in any way possible and put an end to the community divide. Once again, thank you."
The Gregson Green Community Initiative has been approached for comment.