The Duchy of Cornwall has hit out at a local authority planning committee over its decision to reject proposals for an extension to Poundbury, in Dorset.
The organisation, which represents the Prince of Wales' massive property interests, is disappointed that the scheme for a high-density residential development by local practice Lionel Gregory was thrown out last week.
It is additionally frustrated that the project was rejected after it won the backing of West Dorset District Council's planning department.
If the scheme - which is understood to be up to five storeys tall - had got the go-ahead, it would have involved the construction of 31 flats, two shops and residents' parking.
But opposition to the scheme among locals in the prince's high-profile but contentious village has hardened over the last few months.
One resident, who preferred not to be named, said: 'Around 41 people wrote to object to the plans, complaining that the number of houses was too dense, equating to 110 dwellings per hectare rather than the 20 to 30 in the rest of Poundbury.
'Campaigners also argued that the building was too large and would have blocked daylight to existing homes; that there would have been increased traffic, endangering children; and that there was a lack of amenities, such as communal gardens, or public services for residents, ' the local added.
However, a spokesman for the duchy hit back, arguing that Lionel Gregory's project should have been given the green light.
'The duchy is obviously disappointed that West Dorset council has decided to overrule its officers' advice in rejecting this scheme, which we believe fulfils all the principles that Poundbury has successfully established over the past 12 years, ' he said in a statement.
'It is a missed opportunity to provide a significant amount of affordable housing to rent and starter homes to buy in Dorchester.
'We shall obviously now have to review the situation with the applicants in light of this decision, ' the spokesman added.