However the battle may enter another phase with applicants Ecotricity indicating an appeal is likely.
Ecotricity's managing director, Dale Vince, said: "We will now have to take this to the government for a second opinion, via an appeal."
More than 200 people packed a meeting in Gillingham to listen as the arguments were played out over six hours before North Dorset District Council development control committee. Around 150 people had to be turned away.
Councillors had been recommended in a report from planning officer James Lytton-Trevers to approve Ecotricity's proposal but unanimously refused permission. They decided the plans would adversely affect the amenity of 50 houses and doubted the windiness of the site.
Speaking after the meeting, Chris Langham, who had led opposition, said: “We are absolutely delighted that the councillors have seen all the problems that we have been highlighting and that the democratic process is alive and well."
Ecotricity said it would consider all the options before them before deciding whether to appeal.