The application for 124 homes to be built on Crag Lane was rejected by Harrogate Borough Council (HBC) planning committee yesterday afternoon.
The plans, submitted by Taylor Wimpey in February, were unanimously refused by all 16 members.
The impact the development would have had on the landscape was cited as the primary reason behind the refusal.
Harlow Moor Coun Don Mackenzie (Con) spoke against the plans at the meeting. He said: “There would be environmental harm, and I believe having 124 homes there would be inappropriate.
“Above all I felt concerned about the traffic and highways problems the development would cause. Those were the main reasons for refusing planning permission.”
A Taylor Wimpey spokesman said: “Although we are disappointed with the decision, we remain firmly of the view that our proposal for Harlow Grange is sustainable, deliverable and will contribute significantly to the supply of much-needed, new open market and affordable homes in the district.
“In addition, we believe the development will contribute positively to an emerging vision for the Harlow Carr area.”