Plans for almost 150 new homes in the Rahoon/Letteragh area of the city have been rejected by planners.
The project, led by Cairn Homes Properties Ltd, would be based on a site just off Letteragh Road.
The planned homes would be a mix of 148 units - the majority would be houses, with around three dozen apartments, and 20 duplex units.
But city planners have rejected the project on a range of grounds.
They include lack of childcare facilities, which are generally required in developments of more than 75 homes, unless it can be clearly shown that existing facilities are sufficient.
Planners also weren't satisfied with the communual open spaces, desribed as narrow, unbalanced and poorly configured.
They further took issue with the sub-par design of one of the apartment blocks, as well as the potential impact of the overall development on the road network.