An Bord Pleanala has refused permission for 165 homes in Ballinasloe.
The Strategic Housing Development is led by Limehill Esker, and would have been built at Dunlo, behind Tesco.
There were a number of local objections, raising a wide range of issues.
Among them were claims that the density and design of the scheme were out of character with the local area.
Other concerns raised included the zoning of the land, potential traffic hazards, and over-stretched services in Ballinasloe, such as schools and childcare facilities.
One submission raised questions about the validity of badger and bat surveys.
An Bord Pleanala has now rejected the plans, identifying a number of zoning issues, and finding the overall project represents substandard development.