Conwy councillors have refused plans to build 110 house on land at Deganwy.
However, the decision will have to be ratified at next month's planning committee meeting as it went against officers' recommendation to grant permission for the development at Pentywyn Road and Marl Lane.
Officers said the proposals would address a "county-wide housing land supply shortfall".
But councillors rejected the plans following a long debate on Wednesday.
Last month, about 150 people staged a protest, claiming the area was already overdeveloped.