Plans to regenerate the town centre in Peel have been unanimously rejected by a committee hearing.
The designs, which were initially unveiled by the Department of Infrastructure in May,included putting in granite paving on Michael Street and Atholl Place.
Despite receiving support from both commissioners in the town and the Peel Heritage Trust, more than 30 businesses signed a letter opposing the plans.
The application was turned down by the planning committee at a hearing in Douglas yesterday.
Fuel price hit may last into winter, says government
Further temporary speed limits on TT course
Western homes to be without water tomorrow
Co-Op ordered to hand over evidence in blind worker's tribunal
Who'll be getting meningitis vaccines?
New atlas shows dramatic fall in Island birth rate
Autocar lavishes praise on Island's roads
Super Unleaded hits almost 165p a litre