The council has won a planning appeal against Muller Property to prevent 189 homes from being built on a greenfield site in Stapeley, Nantwich.
Crewe-based Muller had proposed developing a 34-acre site in an outline application in 2012.
The council refused the proposed development in 2013, arguing it conflicted directly with the Crewe and Nantwich plan as well as the forthcoming Cheshire East Local Plan and the Stapeley neighbourhood plan. Muller appealed the decisions last year.
Sajid Javid, Secretary of State for Communities & Local Government, has concluded the harm to the character and appearance of the open countryside was too great a sacrifice.
Cllr Ainsley Arnold, Cheshire East Council Cabinet member for housing and planning, said: “I am absolutely delighted that the Secretary of State has dismissed these appeals. If it had been allowed to go ahead, this development would have resulted in the loss of a substantial area of countryside and a considerable amount of versatile agricultural land.
“This council and many local people – supported by their local MP Edward Timpson – had very serious concerns that the location would have its rural setting eroded but this ruling protects the residents of Stapeley and surrounding countryside.”