A developer has withdrawn its application to build an additional 250 homes off Plymouth Road following a number of objections by residents and Tavistock Town Council.
Exeter-based Tilia Homes Western had put forward the plans to West Devon Borough Council for a mix of two, three and four-bedroom homes on the greenfield site off Plymouth Road.
The application set out the detailed design for 124 homes, including some flats, along with a request for permission in principal for a further 126 homes to be built later with two hectares (five acres) of land for commercial use.
A new right-hand turn lane for access to the site, a public open space, a footway, a pedestrian crossing and bus stops are part of the initial plans.
However the plan has attracted objections including concerns about the lack of a visual buffer from the south, the positioning of the proposed play area too far from homes, and extra traffic the development will funnel out onto the already busy A386.
West Devon Borough Council confirmed that the application has been withdrawn.
The site is next to the Little Orchard development of 44 houses and bungalows currently being built by another developer, Baker Estates.
Permission has also been granted to Baker Estates for an extra care facility of up to 60 homes or commercial land.
The principle of all the housing has already been agreed as it in the Plymouth and South West Devon local blueprint for development up to 2034.