Councillors in Bath have voted to shelve plans for a controversial park-and-ride at Bathampton Meadows.
A rapid transit bus route through the centre of the city has also been scrapped by the Liberal Democrat-controlled authority.
It will now bid for £17m of government funds to revamp bus stops and extend three existing park-and-rides.
Campaigners had fought plans to build on the meadow, claiming the loss of green space would be "unforgivable".
A Bath and North East Somerset Council (Banes) spokesman said the Bath Transportation Package had been "substantially re-engineered" to reduce costs.
Roger Symonds, cabinet member for transport, said: "We are clear that better bus routes, expanded park-and-ride sites, and improved traffic information for drivers all form part of improving our transport system and support the infrastructure needed for new businesses and new jobs for local people."