Plans for 135 homes have been rejected after a campaign by villagers who said it would "erode the countryside".
The development proposed for Mulbarton, near Norwich, was refused by South Norfolk Council's planning committee.
It had attracted an outcry with 600 people signing a petition and 400 letters of objection received.
Nick Legg, councillor for Mulbarton who sits on the committee, said: "People want to live in Mulbarton because it is a village community and not a suburb."
The Tory councillor added the plans "would have eroded the countryside between Mulbarton and Swardeston".
Peter Leigh, chairman of the parish council, said: "As a parish council we have reflected the overwhelming view of the people of Mulbarton who have campaigned against this plan.
"In making this decision the committee has recognised the impact it would have had on our residents."