Plans for hundreds of new homes in Laurencekirk have been rejected by Aberdeenshire Council.
Members of the Kincardine and Mearns area committee voted to refuse an application for 247 homes in the town’s Fordoun Road, citing concerns over housing density and the layout of roads.
The councillors also said the development would have a detrimental impact on the town’s open space, as well as failing to comply with the approved masterplan for the area.
A spokesman for the developer said the decision was “very disappointing”.
Douglas McLeod, regional managing director for Barratt Scotland Developments, said: “We are very disappointed with the committee’s decision, especially in light of the current housing demand for affordable and private homes…which this application sought to address.
“We will wait for the decision notice to be issued and then review our position.”
Conservative North East region MSP Liam Kerr said safety improvements on the A90 were urgently needed if the town’s population was to expand.
He said: “I understand the cautious approach being taken by Aberdeenshire Council over adding to the town at this time.
“Laurencekirk’s star is on the rise at the moment, as more and more people are looking for a new life in a prosperous area, with all the benefits of living next to one of Scotland’s main arteries.
“However, that attraction brings with it the danger of having more vehicles on the road, as well as a possible increase in congestion away from the A90 and A92.
“The addition of a 50mph zone around the historically dangerous south junction with the A90 seems to be helping change driver behaviour on this section of road.
“But the Scottish Government has not committed to a date for construction starting on the grade-separated junction there, which has been the focus of local campaigners for well over a decade.
“I am adamant there must be a flyover for Laurencekirk.”
A spokesperson for the Scottish Government said it was committed to improving the safety of the Laurencekirk junction.
The spokesperson said: “We are committed to delivering a grade separated junction at Laurencekirk and announced £24m for its design and construction as part of a package of additional investment alongside the Aberdeen City Region Deal.
“Design work on this important upgrade continues apace.
“We expect to consult shortly on the emerging options and we then anticipate being able to identify a preferred option next year.
“Throughout the process we will ensure that communities, businesses and individuals affected by the work are kept fully informed and their vital feedback taken into account.
“While there is still a lot of essential development work to be carried out we continue to push forward the design preparation stages to deliver this scheme as soon as possible, which will bring improved road safety and economic benefits to road users and the local community in Laurencekirk and the wider north east.”