Planning chiefs have agreed to do a U-turn on plans to expand a Mid Sussex town.
West Sussex County Council aimed to build 500 houses west of Burgess Hill after 2011 as part of its future planning blueprint.
But a report by the Government in March stated the plan should be shelved because the town could not sustain such a major development.
At a meeting of the council's ruling Cabinet yesterday, councillors voted to back the Government recommendation to axe the town from the plan.
The West Burgess Hill Company, a joint venture between Wates Homes and Sunley, initially wanted to build 3,500 homes, primary schools and a business park.
But a report by the Government into the council's draft structure plan, which covered proposals for 46,500 homes in West Sussex by 2016, stated plans to develop land west of Burgess Hill should be deleted.
The council had recommended 500 homes at the site after 2011 but the Government report said local services would be unable to cope with an influx of residents.
The Government report endorsed proposed urban expansions in Haywards Heath, Crawley, Horsham, East Grinstead and in the west of Arun district.
It did not recommend any change to the level of housing provision, set at 46,500.
A county council spokesman said the final decision on Burgess Hill would go before a full council meeting on July 25.
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