An eco-homes development by Grand Designs presenter Kevin McCloud now won't go ahead as planned.
The plans for 241 homes at Gorse Hill were first announced six years ago.
Local residents said Pickards Field was protected by laws and historic covenants and the site should not be built on.
Mr McCloud's development firm Haboakus says it is disappointed the proposals won't go ahead.
Haboakus project director Simon McWhirter said: "After detailed discussions over the last week involving key members and senior officers of Swindon Borough Council and representatives of Haboakus, it has been decided to halt the plans to develop in Gorse Hill.
"We are committed to continue working with Swindon Borough Council to provide the new homes - particularly affordable housing - new jobs, and community facilities badly needed in Swindon."