Moves to relax the rules which allow temporary workers to live in tents in Guernsey have been rejected.
The Housing Authority was to extend the exemptions for horticulture and tourism workers to all industries.
But States members were concerned at the lack of background checks on such people and voted by 25 to 23 to annul the changes which were accepted at May's session.
Bringing the annulment motion, Deputy Dave Barrett said the extension would mean people could live in the island without being checked by the States first.
He was also concerned that people would end up living without basic sanitation, in "Third World situations".
The former president of Population and Migration, said: "There are three registered camp sites in Jersey and none of those will take workers.
"They just do not want to know. If they find they have workers, they ask them to move on."