URALLA Shire Council (USC) has back-flipped on its decision to allow a divisive supermarket extension to go ahead.
Councillors voted five to four to rescind the decision it make just one week earlier, at an extraordinary meeting on Tuesday.
The FoodWorks development application entered by owner Peter Hay has been deferred to address concerns about traffic and pedestrian management, disability access, impacts on trees and access to surrounding museum buildings.
Five residents addressed the council along with the developer on Tuesday and each of the councillors stated their point of view.
The extension has been opposed by the Uralla Historical Society (UHS) from the start, with members concerned the "bulky" look of the proposal would diminish the architecture of the main street.
President Louis van Ekert said he was pleased with the decision to hold off.
"It is what it is, democracy in action," he said.
USC General manager had expressed concerns that a further deferral of the project could put the council's planning powers in jeopardy, after it had already deferred it once for more community consultation.
Councillors Tara Toomey, Bob Crouch, Tom O'Connor, Levi Sampson and Robert Bell moved the rescission motion.
It's unclear when the DA will come back before the council for decision.