Construction of affordable housing in Kirkcaldy has been blocked as tenants would have to keep their windows closed to shut out noise.
The 152 houses and flats would have been built on land north of Nairn Street, near the Forbo flooring factory and other industrial units.
Councillors agreed the development, where part of the Nairn’s linoleum works once stood, was unsuitable as residents would suffer too much noise from the industrial uses and the nearby road and railway line.
Springfield Properties, which is to appeal the decision, was denied planning permission for several four and three-storey blocks of flats and terraced and semi-detached properties for mid-market and social rent.
The Larbert-based company said the estate, run by Kingdom Housing Association, would have given 152 families new, modern homes.
The north-west side of the development would have fronted onto the factory, with properties there requiring three-metre high acoustic barriers.
In her report to Fife Council’s central area planning committee planner Natasha Cockburn said the proposal would see a brownfield site transformed into much-needed affordable housing.
However, she said noise impact assessment found windows on half of the site would have to remain closed to meet standards.
Nearby businesses could also suffer, she said, if complaints were made about noise levels.
She said: “Residents would be subject to unacceptable noise levels both internally and externally, to the detriment of residential amenity and to the detriment of the existing neighbouring commercial businesses.”
Councillors agreed the planning application should be refused in the interests of residential amenity and prejudicial impact on neighbouring businesses.
Springfield Properties chief executive Innes Smith said: “We are very disappointed that this application has been refused.
“There is a shortage of affordable housing across Scotland and a local housing association had already committed to buying this development.
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“Everyone in Scotland deserves to have a good house to live in. Development of this site would see 152 families and individuals housed in new, modern, inexpensive to run affordable homes.
“In addition, the three years of construction would create local jobs and apprenticeships.”
He also said the decision was confusing as the site was identified for development in Fife Council’s local plan and it had proposed a “good solution” to dealing with noise.
He added: “We fully intend to appeal this decision.”
FIFEplan allocates the site for development, with residential use preferred for part of it.
