Cherwell District Council's planning committee turned down the proposal for homes and a doctors' surgery on land in Adderbury.
The authority said it had identified enough building land for the next five years, meaning there was no need to release another site for development.
The village has had more than 180 new homes approved since January 2014.
The council said concerns had been raised that the development of 98 homes, west of Banbury Road, would "harm the rural area by breaching the urban limits of the village and obstructing views of the Grade I-listed church of St Mary".
Planning councillor, Michael Gibbard, said: "With a five-year land supply now in place, this pressure has been alleviated and we can assess applications using our own guidelines, as opposed to those set by the government.
"As such, we do not consider this to be a suitable site as it would not only cause significant harm to the character of the area by developing open countryside but would result in the village losing yet another field to housing."
Councillors have rejected plans to build nearly 100 homes on farmland on the edge of an Oxfordshire village.