LIPHOOK Parish Council has won its fight to prevent a controversial plan to develop 24 retirement homes on land next to the Royal Anchor Hotel in Liphook.
Following a public inquiry last month, a government inspector dismissed an appeal by Taywood Lifestyle Homes.
Anna James said that in three years as a parish councillor: " This is the best bit of news I've heard."
At a parish planning meeting on Monday she said: "If you don't try you don't succeed - we did try and we did succeed."
Inspector Graham Dudley ruled that the proposal was unacceptable because of the adverse effect on the future viability of the Royal Anchor Hotel.
He said that the resulting tree loss would detract from the grade II listed building's rural character, and that land used for the development would take away from the Royal Anchor's spacious setting.
In refusing permission for the proposal because of the strength of local opposition, East Hampshire district councillors went against their officers' recommendation to allow the development.
Villagers were concerned that the development could turn Liphook into a "concrete jungle", and result in the potential loss of its only "green lung".
In an unusual move, the parish council hired its own planning consultant to present the village's case at the appeal.
Mrs James thanked the Bramshott and Liphook Preservation Society, the parish council office staff and all the members of the public who helped to fund the appeal.
The East Hampshire district councillor for Liphook, Richard Hope, said the result brought to mind a comment made at the parish council's annual meeting.
"Why do we bother being councillors? This is probably one of the best reasons.
"It's a real victory not just for the parish council or the district council but all of us working together," Mr Hope continued.
"That is what we must do as a community."