A proposal to build an incinerator that would burn up to 260,000 tonnes of waste a year has been rejected by councillors.
Bournemouth, Christchurch and Poole (BCP) Council's planning committee voted to turn down the application from MVV Environmental Ltd to construct the facility at Canford Resource Park.
It would have burned non-recyclable and non-hazardous domestic, commercial and industrial waste to generate electricity.
Opponents described the plan as an "inappropriate development" on green belt land and warned it would caused air pollution in the surrounding areas.
Vikki Slade, the Lib Dem MP for Mid Dorset and North Poole, said the decision was of "great relief" to residents.
"No one disagrees that we need to find ways to deal with waste locally, yet as our waste is reduced we need to be proportionate in our measures to process and deal with it," she said.
"It is wonderful that today local people have been heard."
The council said 469 objections to the scheme had been received during the planning process.
Critics pointed to the emissions of carbon dioxide from the plant and said that waste incinerators were considered the "dirtiest" way the UK generates power.
Speaking outside Bournemouth Town Hall before the meeting, Joanna Bury from Wimborne Extinction Rebellion described the plant as a "a polluting giant" and said it would affect residents of nearby Wimborne, which lies outside the BCP Council area.
"It will send a six-mile toxic plume around the area," she said.
"It's totally unfair, unjust and particularly for children whose lungs are extremely vulnerable."
Speaking during the council meeting, Giles Frampton, director of Portland PFP which is planning an incinerator at Portland Port, said there was "no legal basis" for approving the plans.
"It should clearly be refused as inappropriate development in green belt that does not conform to the development plan or national policy," he said.
Nathan Ross, managing director of landowner Canford Renewable Energy, told councillors the plant would be "safe, clean and viable at this scale".
He said the plan would mean residual waste would not need to be sent abroad and would provide "energy security for BCP".
Paul Carey of MVV Environmental said the company would be a "good neighbour".
"Please be assured of our intentions to work responsibly in our community and environment," he told councillors.
It would have provided 28.5MW of electricity to businesses at Churchill Magna Business Park, as well as to Arena Way and Magna Road, and featured a 110m (360ft) tall stack.
On Wednesday, the Environment Agency said it had granted the scheme a permit to operate – covering the management and operation of the plant along with monitoring of emissions.
The EA permit was separate to the council granting planning permission, although the plant could not operate without both being granted.
