Plans for 20 affordable homes on the site of a disused primary school have been rejected following opposition.
Hacer Developments had wanted to demolish buildings on the site of Ffynnonbedr Primary School in Lampeter and replace them with houses and flats.
Concerns were raised about the density of housing, and Ceredigion council planners voted against the scheme.
This came after the council originally earmarked the site, on Bryn Road, for 12 homes in the local development plan.
The old school closed when a new one was built on a site next to the town's comprehensive in 2007.
Lampeter town councillor Hag Harris said prior to the decision: "It goes against what the local development plan said for this site.
"It was about 12 properties. Now it's 20 properties. The facade of the school was to be incorporated... that's now out the window."
Planning officers had recommended approval because of an "acute shortage of affordable housing in the town".