Corangamite Shire has refused to allow Acciona to build a 15-turbine wind farm at Newfield near Port Campbell in south-west Victoria.
Only one councillor supported the $50 million development.
Mayor Ruth Gstrein says there were several reasons why the council refused to issue the permit to Acciona.
"The wind farm is proposed to go on a significant ridge line on the Cobden Port Campbell road, the other issue is the cumulative impact of another industrial user in primarily a farming zone," she said.
"There are two large gas plants already in that area, so by having a lot of industrial users it perhaps restricts the operation of a farming zone."
