The board of the Malta Environment and Planning Authority (MEPA) this morning rejected an application for the building of 15 apartments encroaching on a villa neighbourhood in Balzan.
The issue had been the subject of protests from neighbours who argued that there was an error in the local plan which converted an area reserved for villas into one for other terraced houses and apartments.
They have been contesting this development since 2005 and last year 28 families filed a judicial protest asking MEPA to correct the mistake.
The application was for the building of two blocks in St Francis Street, corner with St Gabriel Street.
The board decided that the application would be rejected because of the major impact it would have on the area.
MEPA chairman Austin Walker said the local plan would be re-assessed and any discrepancies would be ironed out.
Neighbours applauded when the 7-1 decision was announced.