A government inspector has rejected plans which would have seen the which would see the building of two barns to house up to 1,250 pigs each, a slurry store and feed bins on land off Broadwell Road near Grandborough.
Residents previously set up a petition and a group, People in Grandborough say No Pigs, and have continued to campaign.
Campaigners argued the application did not say how it would meet animal welfare regulations and that it could adversely affect neighbouring businesses including rare breed farms, smallholdings and caravan and camping sites.
Those involved with Woodbine Riding Stables, which provides riding lessons for the disabled, said the plans would negatively affect the business as pigs would spook the horses.
The proposal was originally rejected by Rugby council's planning committee in February this year during a turbulent meeting which saw the police summoned to remove members of the public.
Among the chief reasons given for the rejection was concern over how the development would impact the surrounding environment.
The applicant, John Evans, appealed the planning committee's decision - and a government inspector today (December 19) rejected that appeal.
In the report explaining his decision, the inspector wrote: "Whilst I have not found that the scheme would not harm the peace and tranquillity of the area this does not alter my concerns about the effect of the scheme on the landscape character of the area.
"I therefore conclude that the scheme would have a harmful effect on the character and appearance of the area."
You can view the details of the appeal in full by clicking here and searching for reference: 3198388.