A firm which failed in its bid to build an Asda superstore on the Abergavenny cattle market site will appeal against the decision.
The plans would have included a supermarket and car parks
Monmouthshire councillor Bob Greenland confirmed that developer Henry Boot intends to appeal after the planning committee's rejection.
Thousands of objections were lodged to the proposals.
Six community groups have now demanded that the council keep them informed of any future proposals for the site.
The group, which includes the local chamber of trade, tourist association, civic society and others formed campaign group Sauce (Save Abergavenny's Unique Character and Environment).
Sauce told Mr Greenland, the cabinet member responsible for the development, that it wanted the council to ensure it fully consulted the group on any design brief or proposals for the cattle market.
In response, Mr Greenland said: "I can now confirm that having received legal advice, Henry Boot will be appealing the planning decision.
"It may well be that whilst the appeal is pending they may also wish to consider an alternative proposal.
"As I am sure you will understand, we are contracted to them until such time as a final outcome on (the) application is known. The decision to lodge another application will be theirs.
"If they do submit another application it would be regarded as a new process and will be subject to the normal scrutiny and consultation procedures.
Existing traders voiced their objections to the plans
"I can assure you that if and when such an application is received, we will welcome the views of all interested parties.
"In the meantime I, and no doubt other elected representatives of the town and county councils, will be engaging with the people of Abergavenny and all who use the town, so that we may be best informed of their views, which will be fed into the democratic process.
"However it will be impossible to satisfy everyone, so in the end, subject again to any appeal process, it will be the properly elected representatives of the people tasked with making that decision, the county council planning committee, that will decide the matter."
The development at the cattle market had received widespread criticism, including from the town council and the local chamber of trade.
Wales' Design Commission had also been critical, saying the scheme was unacceptable and should be radically overhauled.
If approved, the plan would have meant a new Asda supermarket, as well as other shops, a cinema, library and large car parks.
The council had said it would have meant £11m from the developers - money which they said would have benefited the town.
The plan was rejected once before on design grounds, but after the developers submitted an amendment to the plan, council officials recommended it for approval.
But it was rejected a second time in December.