The Prince of Wales has failed in his second attempt to get planning permission for a block of flats in his model village.
Residents have opposed plans to build the flats
Developers submitted revised proposals for 26 flats, two shops and four offices at Jubilee Court, Poundbury, Dorset, after a first bid failed.
The original plan, for 31 flats, was rejected last year after residents claimed the development was too large.
West Dorset District Council ruled the new plan was also too big for the area.
Colin Wood, of the council, said: "The mass and density of the proposal will establish an overpowering relationship with adjourning residential properties, reducing their amenity to an unacceptable level and to a point which is at odds with the predominant character of the area."
Poundbury is built on land owned by the Duchy of Cornwall, one of the largest and oldest landed estates in Britain that covers the cost of the heir apparent's public and private life.
A spokesman in the Dorchester offices of the estate said no-one was available for comment after Thursday's decision.
Work on Poundbury, which represents Charles' view of the perfect rural community, began in 1993.
About 750 people now live there, with about 2,200 homes to be built in total.
Villagers deny snobbery
The prince has often spoken of the need for affordable rural housing, but the plans to build the flats, mainly for people on low incomes, have been opposed by some residents.
The council planning committee said it had received 41 letters from residents with concerns over the development.
The residents deny accusations of snobbery, saying the development is simply too big to sit among the other cottages.
Resident Paul Breakwell said: "Obviously we are extremely pleased. We think it was a very courageous decision of the committee.
"We felt it was too much development for the site."
It was a very important meeting because if this had gone ahead it could have been used as a landmark ruling for anyone wanting to put up such a development in a semi-rural area."
The developer Woodpecker Properties said all the buildings would have been built in a traditional style, in keeping with Poundbury's established character.