Hop Farm Festival has had its license application for 2009 rejected following opposition from local residents.
More than 100 people from nearby East Peckham are against the proposed three-day festival, which is planned for 3-5 July at Hop Farm Country Park in Kent.
However, Tonbridge and Malling Borough Council said the real reason they could not consider the plan was due to insufficient information in the application document.
Summing up, chief planner Lindsay Pearson said: "The level of information at submission of the licence is not sufficient for us to be satisfied that as a matter of principle the proposal should go ahead."
Festivals mogul Vince Power had hoped to expand this year's inaugral one-day event into a full three-day festival with camping, and up to 53,000 people.
But during the council meeting earlier this week every member of public present registered their opposition, claiming the festival would cause anti-social noise, disruption and environmental damage.
Festival organisers will no doubt have a second attempt to secure the license – something every festival requires to go ahead – however, the level of public opposition is bound to cause further obstacles.
Hop Farm Festival started out this year as a one-day festival headlined by Neil Young. Positioning itself as 'anti corporate' with no sponsors or advertising, it is the first UK venture of former Mean Fiddler boss Vince Power since he sold the company, now known as Festival Republic, to Live Nation and MCD in 2005.