Clare County Council's controversial policy that bans "outsiders" from building homes in certain parts of the county has been endorsed by An Bord Pleanala.
The planning appeals board ruling that the policy was "reasonable" comes as the council overhauls the relevant section of the 1999 County Development Plan.
This follows anger from council members over a large rise in planning refusals in the county due to the impact of the settlement location policy of the plan they adopted last December.
Figures for the first six months of the year, published by the council, show the refusal rate of planning applications is now at 18 per cent - six times the refusal rate for the same period last year.
An Bord Pleanala, in what is understood to be its first decision on the "non-local" provision, upheld a council decision refusing outline planning permission to Mr PJ Danaher and Ms Margaret Danaher to build a home at Doonagore, Doolin, north Clare.
The Danahers had sought planning on behalf of Mr Danaher's sister, Ms Mary Jayne Danaher-Leyne, who is seeking to return to Doolin after emigrating to the US in the 1950s.
In a letter to the board, outlining her "local" credentials and seeking to overturn the council's decision, Mrs Danaher-Leyne said it had always been her intention and that of her husband to retire back to the place "we consider to be home". Informing the board that she was born and raised in Doolin, she wrote: "My immediate family has lived for generations there, and will remain a part of this community for generations to come." She added: "My husband and I have returned on a regular basis to visit family, attend weddings and functions and maintain our ties with the local community." It was her wish to return to Doolin, she added, "so that we can be close to my family and be able to help them should the need arise".
However, in its ruling, the board stated that "it is considered that the proposed development does not come within the scope of the housing need criteria in the development plan. "The proposal would therefore be contrary to proper planning and development of the area", The board said it was council policy to restrict development in certain areas "which are under high development pressure and are designated as special development zones to that necessary to meet the needs of local people. This policy is considered to be reasonable". In response to the letter from Mrs Danaher-Layne, the board inspector said she was not satisfied that this was the only site available and that the applicants fulfilled the criteria for a house in the open countryside.
The board also stated that the proposal would give rise to ribbon development and would injure the visual amenities of the area. A draft of a new settlement location policy for the development plan, which is expected to revise the "non-local" rule, is to go before the council next month.