Councillors in Winchester have voted against plans to build 2,000 new homes at farmland on the edge of the city.
They will now go on to oppose the development at Barton Farm, north-west of the Hampshire city, at a planning inquiry in September.
They made use of a change in government planning guidance which now allows housing numbers to be decided locally.
Developers Cala Homes argue that Barton Farm is the most sustainable solution to Winchester's need for more houses.
However residents have objected to the plans for a "new suburb", saying the city's roads, schools and services could not cope with development on such a scale.
Under the new housing planning guidance Winchester City Council will no longer be forced to accept the regional figure for how many new houses it has to build.