Plans for another supermarket in Blackwood have been thrown out by the Planning Inspectorate for Wales.
Developer Develica wanted a supermarket at its Blackwood Gate Retail Park and applied for planning permission in November 2008.
Caerphilly County Borough Council turned the application down on the grounds there was no demand for another supermarket in the town.
Develica appealed but the Planning Inspectorate for Wales has now backed the council’s original decision.
Cabinet Member for transportation and planning, Rob Gough, said: “We are very pleased our case was upheld, the issues surrounding developments out the town centre, particularly those put forward by Develica, are often emotive and economically driven but not necessarily for the good of all.”
Since the opening of the retail park in November 2006 only the Bumble Bee pub and Focus have been trading from the site leaving six vacant shop units.