The state's top planning body has quashed plans for 17 homes in Roscommon town - after objections from local residents.
Roscommon County Council had given the proposal the green light.
This development is planned for a three-acre site on the Golf Links Road in Roscommon town.
Reimas Developments wants to demolish a two-storey house and build 20 three-bedroom homes.
Roscommon County Council granted planning permission, but only for 17 homes.
But residents in Hyde Court, just off the Golf Links Road, appealed the decision to An Coimisiún Pleanála, mainly on the basis of the effect it would have on their estate.
An Coimisiún Pleanála has refused planning permission, saying not enough homes were planned for a three-acre site, with just 17.
It said it would be significantly lower than the density range for such a location within a key town, with a population of over 5,000 people.