Taylor Wimpey planned to develop 450 homes at the Spencerfield site.
A controversial housing plan that would have effectively united two towns was unanimously rejected by councillors.
The proposal to build up to 450 homes at Spencerfield, between Inverkeithing and Dalgety Bay, was thrown out at a full meeting of Fife Council.
The council’s decision endorsed a similar conclusion reached by members of the west Fife planning committee this month.
The plans, submitted by developer Taylor Wimpey, had received 250 objections, with concerns having been raised about the possible merging of the two communities, as well as road safety and congestion worries.
Fife Council officers recommended the plan be refused as the development of the Spencerfield site was not supported in the adopted local plan and was considered to be significantly contrary to the development plan.
Because of these factors, the application was referred to full council, which has rejected the proposal.
