An appeal against the decision to reject a bid to build 147 houses in Desborough has been thrown out.
Gladman Developments wanted to create the development at Willowbrook Stud Farm in Rushton Road.
Kettering Council refused planning permission in March 2016 but the developer appealed, leading to a four-day inquiry.
But the Planning Inspectorate agreed with Kettering Council and rejected the appeal.
Allan Matthews, who represents Desborough on Desborough Town Council and Northamptonshire County Council, said: “From a personal point of view and as someone who lives in Desborough, I am quite pleased with this decision.
“Quite frankly it’s over-developed, especially when you consider the other application for the adjacent Ise Valley.
“As a town council we have been pushing not to have a development here.”
Inspector Helen Hockenhull, who led the inquiry, said that despite the scheme having obvious benefits it was not a sustainable development.
In her decision notice, she said: “The scheme would contribute to boosting the supply of housing and would also provide affordable housing, notwithstanding that the council has demonstrated a framework-compliant supply of land.
“The proposal would also provide employment during construction and result in construction expenditure providing local economic benefits.
“Future residents would no doubt spend in local shops and help support local services and facilities.
“The provision of improved bus stops and pedestrian links would be of benefit to both new and existing residents and the provision of green infrastructure within the site would improve biodiversity.
“While the above benefits weigh in favour of the scheme, I consider that they do not cumulatively outweigh the harm I have identified.
“The proposal conflicts with the development plan and as the material considerations in this case do not indicate otherwise, the development should not be permitted.
“Therefore in terms of the framework, the proposal does not form sustainable development.”
Gladman Developments declined to comment.