Protesters who have been campaigning for four years against a 1,000-house development south of Banbury are claiming victory after plans to build the homes were thrown out by Cherwell District Council's executive committee.
Thousands of objections from members of the public mean the Draft Cherwell Local Plan cannot be finalised before new planning rules come into force in 2006.
In a statement, the council admitted that new legislation and delays in processing the draft plan had forced the executive to accept that the Bankside/Bodicote development proposals could not be formally adopted before the July 2006 deadline.
From that date, all development plans must be subject to new Strategic Environmental Assessment regulations.
Bob Madge, chairman of the Bodicote Bankside Action Group, said: "The executive decided to bin the plan because the number of objections meant they could not get it finalised by the July 2006 deadline."
A public inquiry which was scheduled for early next year has been called off.
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