Planning permission for the proposed Barcloy Hill Wind Farm has been rejected by Dumfries and Galloway's Planning Applications Committee.
The 12.5MW development would have consisted of five turbines, located between Castle Douglas and Kirkcudbright, and would have been capable of generating electricity equivalent to the average annual demand of more than 7,500 homes.
RES, the developers behind the scheme, have said it is disappointed by the decision.
John Appleton, RES Development Project Manager, said: "Whilst Dumfries and Galloway Council raised objections on the grounds of effects on landscape character and visual amenity, this position is not supported by Scottish Natural Heritage (SNH).
"RES is in ongoing discussions with the National Air Traffic Control Service (NATS) and we are confident that a resolution to the NATS objection can be reached. We are disappointed that Dumfries and Galloway Council did not defer the Committee decision to allow these aviation discussions to conclude.
"Our proposal for Barcloy Hill is the result of an extensive site selection process followed by detailed environmental surveys and sensitive project design, and we remain confident that this is an excellent location for a wind farm."
RES added that it will review the Council's decision in further detail before considering its next step.
(JP/IT)
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