J Ross Developments wanted to erect the houses and flats on the Gobowen Road in Oswestry, close to the town's historic Cambrian Railway works.

People living near the proposed site claimed the project would be out of character with the area.

Oswestry Borough Council agreed and threw out the plans, even though planners had given their approval.

Members of the authority's development committee voted unanimously to reject the application at a meeting on Tuesday night.

One of the objections raised by locals was that a planned four-storey apartment block would be too high for the area and would give visitors a bad impression as they drove into the town.