Land at Watery Lane in Ashbourne has been withdrawn as a potential site for a traveller family after the former owners refused to lift a covenant.
Derbyshire Dales District Council wrote to Nestle in October to ask if they would lift a legal agreement which stopped the authority – who now own the land – from developing the site.
But on December 20, Nestle refused to give permission.
Dorcus Bunton, district council chief executive, said: “Watery Lane would have been the most cost-effective option and the most appealing to the Derbyshire Gypsy Liaison Group (DGLG).”
A detailed report on the remaining potential sites will be presented at a meeting on January 22. Sites suggested by Derbyshire County Council will also be discussed.