An appeal into a controversial 38 home scheme for West Hill was withdrawn on the eve of the hearing into the application.
The proposals to build on the land adjacent to Greytops in the village were refused in May last year by East Devon District Council (EDDC).
The landowner, Nigel hardy, launched an appeal into the decision, which was due to be heard by the Planning Inspectorate on Wednesday.
But Ralph Gray, Mr Hardy’s agent, confirmed on Monday they would not be continuing with their case.
The application, on the land known as Cooper’s Court off West Hill Road, was for outline consent to build 22 retirement apartments and 16 houses, and included plans for a doctor’s surgery and coffee house.
It was not supported by Ottery Town Council, and received score of letters of objection from local residents.
EDDC’s Development Management Committee rejected the plans, concluding the land was outside West Hill’s development boundary, the design was out of keeping with the village, and it would be an over-development of the two and a half acres.
Claire Wright, the district councillor for the Ottery Rural ward, called the late withdrawal of the appeal ‘unacceptable’, in light of the costly preparation work EDDC had already undertaken for this week’s hearing.
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