South Norfolk Council has rejected a plan to build four non-food retail units in Diss.
A spokesperson for the council said it had been turned down on the grounds of scale and design.
Seven councillors voted against the application, one voted for, while one abstained.
The proposal, submitted by Marston’s for land behind the Thatcher’s Needle pub, was recently amended to make buildings “more contemporary.”
It would have seen three units in one building and one further unit on its own, and provide 189 parking spaces, of which 12 are disabled.
South Norfolk Council officers had recommended that the plans be approved.
Diss Town Council had recommended refusal on the application, while representatives of the Diss Heritage Triangle project and the Diss Heritage Traders group had spoken out against the plan.