The village pub is housed in a converted barn
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The latest stage in a plan to demolish a pub to make way for houses has been rejected after a campaign.
Villagers have claimed that the Old Barn Inn at Three Cocks, near Brecon, was a vital community facility.
Councillors in Powys refused the housing plan on Wednesday, even though authority planners had recommended approval.
The firm behind the plan, Bywyd Developments, said it would appeal against the decision.
Villagers have claimed that the Old Barn Inn, which is closed, is the only potential meeting place in the community.
Following a meeting in Brecon, members of Powys Council's Brecknock planning committee voted to refuse the housing proposal.
Councillors said a loss of community facility was the reason for rejecting the proposal following a lengthy debate.
A Powys Council spokesman said: "We can confirm that the application was refused against officers' recommendation."
'Village without pub'
Three Cocks resident Chris Jones said he was delighted the housing scheme had been rejected.
He told the BBC Wales news website: "The community hasn't got anything else. What's the point in building more houses when there is nothing here?
"There's a post office and a garage, but nowhere for people to gather.
"What's a village without a pub?"
Mr Jones added that he believed the pub could be revived as a going concern.
He said: "The old landlord used to help with birthdays and funerals, as well as darts teams and the football club - that's all disappeared.
"I'm very pleased with the council's decision.
Appeal plan
"This isn't just about Three Cocks, it's about lots of other local pubs in Powys.
"All we can do now is wait and see what the developers decide to do next."
An application to replace the Old Barn Inn with homes had previously been considered by the council.
This latest application has now also been rejected but the developers said they had already taken steps to launch an appeal against the planning decision with the Welsh assembly.
Tim Morgan, of Bywyd Developments, said: "We've already applied for the forms - in Wales the appeal process could take around six months.
"People never used the pub, that's why it closed. That's nothing to do with us.
"The pub didn't get enough business to stay open."