An Bord Pleanála has reversed Clare County Council's decision to give the green light for a new Aldi outlet in Killaloe.
The local authority had given the project the go-ahead last September, but the planning appeals board has now reversed this decision.
Clare County Council was warned that Aldi's planned supermarket at Abbey Street, Killaloe would threaten existing employment in the town.
The German supermarket giant had sought permission to construct a single-storey supermarket next to the protected Deanery structure.
This, however, was met with strong opposition from local business people John Daly, of The Forge General Store, and Bill and Maureen Kenny of Heaney's Costcutter.
The Council's devision to grant permission for the construction was appealed to An Bord Pleanála, who have now decided to refuse permission.
Aldo had claimed that the objections were anti-competitive, coming from other commercial retailers, and stated that there had been no objections from local residents.