Developer Spring Residential is to appeal against a decision by Oxford city councillors to reject its plans for a four-storey block of flats on the site of the former Castle Mill boatyard, in Jericho.
Spring spokesman Rebekah Paczek said: "I can confirm that we're going to appeal against the council's decision regarding the existing application.
"The appeal will be lodged with the planning inspector once the reasons for refusal have been clarified by the council.
"It will be up to the planning inspector to decide whether or not to hold a planning inquiry."
Protesters, who met outside the Town Hall on Tuesday night when the area committee decided on the application, said they were 'disappointed' at the decision to appeal.
One, Adrian Arbib, said the decision was "pretty depressing".
He added: "The meeting was very positive and councillors added lots of reasons for refusal to the ones that had been put forward by planning officers.
"I'm very surprised that Spring are persisting with this unimaginative plan and thought they would have the sense to at least put forward a more reasonable proposal."
Additional reasons given for rejection were the lack of a replacement boatyard, the scheme's design and height, its impact on St Barnabas Church, and flood fears.
Officers' reasons for rejection included the lack of affordable and energy-efficient housing, insufficient financial contributions for services, and lack of a legal agreement for a community centre.