A battle between Oxshott residents and building developers ended in victory for the village on Monday night.
Plans to build up to 50 houses and flats at the site surrounding Willoughby's Nursery in Leatherhead Road were refused by Elmbridge Borough Council's planning committee.
Scores of residents objected to the scheme which, they said, would destroy the character of Oxshott and increase traffic in the relatively small street.
The public gallery at the council's chambers in Esher was packed with people waiting to hear the decision.
The council received 123 letters of objection from 68 homes in the area and a petition signed by 56 residents.
Oxshott and Stoke D'Abernon councillor James Vickers said it was great news for residents, but that the future of the site was still uncertain.
He said Nicolas King Homes PLC's application was refused as it had barely changed from the firm's first application for the site earlier this year, which was also rejected, and because it would create a huge volume of traffic.
Councillor Vickers said: "We are delighted, it was far too many houses for the area. There is still grave concern over the site as it is expected houses will be built on it at some point but we don't want development to start changing the face of our little village."
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