Plans to rejuvenate Lydney Docks in Gloucestershire have suffered a setback with a bid for £17.5m from the Lottery Fund being rejected.
The proposed scheme made it down to the final 23
The Lydney Harbour Alive project would have involved a boat yard for traditional vessels built around a new basin cut into a field.
A visitor centre, pub and restaurant and moorings for houseboats were also part of the scheme.
Out of 500 applicants, the scheme made it down to the final 23.
A two-year refurbishment programme on the docks was competed in 2005.
The docks on the Severn Estuary in Gloucestershire have been designated a Scheduled Ancient Monument.
In 2003 a grant of £873,000 was secured from the Heritage Lottery Fund towards this restoration.