Plans for the Riverside Business Park in Bakewell, Derbyshire, included 32 new business units and 107 homes, some in a flood plain.

Peak District National Park officers urged developers to work more closely with them to find a compromise.

The five-hectare site has been an industrial site since the 18th century.

Narendra Bajaria, chairwoman of the Peak District National Park's planning committee, said the developers should consider tapping into public funding to rebuild the business park.

"While we understand that a certain amount of open-market housing may be necessary, we are not comfortable with the scale proposed.

"Other funding may reduce the dependence on housing to help finance the package," she said.