Plans to build a pub near a primary school in the Healthhall area of Dumfries could go ahead despite opposition from councillors.
Dumfries and Galloway Council refused Calmac Developments permission to construct a bar but the decision has been overturned by a government official.
A report by the local authority hoped to challenge the move but no legal basis to halt the development was found.
Councillor Jeff Leaver said: "I did actually go to Heathhall community council and broke the bad news to them and gave them copies of the report. And I must say they were all very, very disappointed that a decision appears to have been made that there are no grounds for appeal.
"They have nothing against having a public house in Heathhall but it's the positioning, right in front of the school, that's the problem.
"We try to educate people into drinking sensibly. I do think it sends out the wrong message and it goes totally against what the Scottish Government is saying at the moment about drinking and young people."
Heathhall Primary due for completion in 2010, it is being constructed at a site adjacent to the former Dumfries and Galloway College.
The school will be built alongside eight other new schools in the region as part of a multi-million pound private partnership programme.
(GK/JM)
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