Controversial plans for a new bridge over the M4 have been blocked by planning officers.
Reading University owns much of the land around the village of Shinfield, and had proposed a bypass around the village and a bridge over the motorway.
Campaigners against the plans said the village could not handle the knock-on effects of the development.
The proposal was blocked by Wokingham District councillors at their meeting on Wednesday evening.
The university said they were disappointed with the decision and will now consider their position.
They had argued it would move up to 75% of traffic away from the village and prove a boost to the environment.
But many campaigners said they feared "the thin end of the wedge" and that major housing developments could follow if the bypass was agreed.