Heritage Homes has had its application for 95 homes in Kirk Michael refused.
The plans would have seen the company create a new estate just off Main Road on the Eastern side of the village.
Over the past months, it’s been the subject of fierce debate after the firm arranged a land swap at Kirk Michael School to build an access road to the development.
Yesterday, the Council of Ministers accepted the recommendation of an independent planning inspector to turn down the application.
The plans are the latest version of a proposed new development for that particular area of Kirk Michael.
In their decision, the Council of Ministers said the housing plan would affect the views from Kirk Michael’s conservation area.
They added it would neither preserve nor enhance the appearance of the area, and would therefore defy planning policies.
There was also a nod to a potential future development of the village, with the Council saying the proposed access road could prejudice a decision about a bypass for the village.
