The 58-property development had been proposed for a Cairngorms National Park community.
On Friday, a site visit was carried out by members of the planning committee, who later decided to reject the application.
The plans were submitted last year, but the two sites in question – located off the School Road and Craigmore Road in the village – have a long and complex planning history, the CNPA has said. Argyll Developments (Scotland) Ltd had been behind the development.
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Fiona Murphy, Planning Officer, outlined reasons for her recommendation to refuse the proposal.
She explained: "We have to take account of the fact that Scottish Government Reporter has recently recommended that the School Road site is deleted from the Local Development Plan completely.
"For that reason, along with concerns around the negative impacts of the proposals on ancient woodlands, recreation and amenity, I recommend members refuse this application."
Planning Committee Convener, Eleanor Mackintosh, added: "This application certainly does have a complex history but regardless, there is no getting away from the fact that this development would have a significant negative impact on the natural heritage of the area. Nethy Bridge is a village that prides itself in its connection with nature and which boasts lots of wildlife on its doorstep.
"Today we have also approved changes to the new Local Development Plan allocating the Craigmore Road site for housing development. We will now work with the developers and the local community to see appropriate housing delivered on that site as soon as possible."
(JP/CD)
