An application to build industrial workshops and maisonettes was rejected because it would be too noisy for future residents.
Worthing's planning committee thought plans to develop a builder's yard in Goring Road did not include enough Parking spaces and had an overshadowing effect on neighbouring properties.
It was also thought the site would not be suitable for residential use because of noise from the industrial units.
At present the site houses a fenced yard with racks of building materials.
The proposals included four light industrial units at ground-floor level with four two-bedroom maisonettes built on top.
Before the committee's decision, more than 20 people had written to Worthing Borough Council to say they were concerned about the effect the development would have on traffic and local businesses.
One wrote: "Insufficient parking is proposed.
"The car park behind Goring Road shops is already always full and the excess of shoppers' and traders' vehicles overspills into Mulberry Gardens.
"Parking on the corner of the Mulberry Gardens is already very dangerous."
Another said: "The term 'light industry' is unclear.
"Will this allow noisy, smelly or dusty uses into this residential area? This would not be acceptable."
A council report said deliveries to the industrial units were likely to cause a disruption and there would be "no refuge" for people living in the maisonettes because their doors and those of the workshops would open on to the same car park.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article