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Planning permission has been refused for five new houses in Lea because of their size and density.
F and G builders from Common Road in Malmesbury had proposed to build the residential development in at The Cedars, in The Street, Lea.
But district councillors rejected the scheme because they said the houses were too big and cramped together.
Many people living in Lea have also opposed the development because it would mean knocking down a large Cedar tree.
During the meeting district councillor Toby Sturgis said: "This is the most controversial planning application in Lea since I have been a councillor."
District councillor Tom Briggs said the fact that the district council had originally granted outline planning permission for development could come back to haunt them because it meant that in five houses could be built at The Cedars in the future.
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