Plans for an extension to Cortonwood retail park, which would have created 250 jobs, have been turned down, leading to a mixture of relief and disappointment from local people.
The proposals claimed the development would have created the jobs through £25m of private investment, which would have seen a current warehouse on the site demolished and six retail units erected.
But Rotherham councillors rejected the development on the basis it would adversely affect Barnsley town centre and cause potential traffic problems - objections made by Barnsley Council when the plans were submitted.
Daniel Harris, who owns the land and submitted the application, said he was 'very disappointed' with Rotherham Council's decision. He said his company, Budenny LLP, would be considering its options following the announcement.
But David Cole, of Wombwell High Street Committee, welcomed the news. He said: "It's a good thing really because money needs to spent on small towns rather than expanding retail centres.
"A lot of these centres are struggling and shutting down in the current economic climate but, if you keep building more, it shuts down high streets as well - so then you're left with nothing at all. We need to go back to basics with high street shopping and a sense of community."
However, Brampton Parish Coun Steven Saunders said it was unfortunate an opportunity to bring jobs to the area has been turned down.