Waterford councillors have objected to expanding Traveller accommodation at Carrickphierish on the city's outskirts.
The local authority had brought plans to build seven new accommodation bays, but these will now not go ahead after being voted down by a large majority.
Some councillors cited a lack of enforcement on people setting up new caravans around the grounds.
However, Waterford Council said it would not remove family members of Travellers from the site.
Senior planner Joe Sullivan insisted there's a need for the seven bays at Carrickphierish to accommodate an extended family.