An Bord Pleanála has turned down a planning appeal over the construction of an apartment block close to Letterkenny Main Street.
The proposed development at Rosemount Lane sought the demolition of two unoccupied houses to make way for a four and five story apartment building with 17 units.
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Donegal County Council initially denied permission for the development by Millennium Unit Trust 105 in 2022.
A subsequent appeal to An Bord Pleanála was refused on a number of grounds.
The appeals board highlighted several issues, including over-development of the site, the size of the apartments and the demolition of two traditional townhouses to be replaced with a predominantly commercial scaled apartment block with poor levels of natural surveillance.