Councillors made the decision to refuse the application by Popes Lane By-Products at a specially-convened meeting last night.
The enforcement committee decided the applicant had failed to adequately take into account the lie of the land where the incinerator would be located, and the proximity of the local Astwood Bank First School and housing to the proposed chimney stack.
For this reason members were not satisfied emissions would be prevented, adequately reduced or made harmless.
The decision followed three-and-a-half hours of questions and debate in the town hall.
Enforcement committee chair Ron Passingham said it was a difficult decision for members.
'This is a very emotive issue, demonstrated by the presence of nearly 200 members of the public at the meeting.
'However, we needed to deal only with the legal aspects and other relevant factors of the application and ensure both sides got a fair hearing.
'In the end we felt it was impossible to guarantee, given the location of the incinerator within a valley and only a short distance from a school and homes, that in unusual meteorological conditions all emissions could be kept out of those buildings.'
The enforcement committee resolved to refuse the application for the following reason:
The applicant has failed to adequately take into account the topography of this site and the proximity of the local school and housing to the proposed chimney stack and therefore the committee is not satisfied that the objectives of section 7(2) (a) of the Environmental Protection Act 1990 of preventing or reducing the release of prescribed substances or rendering prescribed or other substances harmless can be met.