A plan for a waste recycling centre, which was opposed by more than 700 households, has been rejected by Salford Council.
The centre, on Green Lane, between Monton and Patricroft, would have recycled 100,000 tonnes of rubbish a year, generating electricity.
Residents opposing the site were backed by Salford and Eccles MP Hazel Blears.
Developer Sky Properties, which said businesses backed the plan, plans to appeal against the decision.
Residents claimed the plant was nothing more than an incinerator and posed a health hazard.
Some said it would also increase traffic in the area.
Sky said the centre had a plant to process food and other biodegradable waste to generate renewable energy, as well as "gasification" to convert non-recyclable waste into heat.
It said it would treat and manage 240m tonnes of waste which would otherwise go to landfill and make use of a derelict site.
Ms Blears said: "We do have to do something with our waste, absolutely, but this isn't Salford waste you know, this is coming from the whole of Greater Manchester.
"It's commercial waste, and in my view it is better off in a place like Trafford Park, not 100m where people are trying to bring up children."
Sky said gasification was cleaner technology than incineration and did not pose a threat to public health.
Anthony Hirsch from the company said the result was "not unexpected".