PLANS by Hjaltland Housing Association to build 38 affordable homes and associated air heat pumps next to the Herrislea House Hotel, in Tingwall, were again refused by the council's planning board on Wednesday.
An almost identical proposal was refused by the board in 2009, and when the housing association appealed the decision a reporter from Scottish Ministers refused permission on different grounds.
On Wednesday, councillors rejected the new application saying the agricultural land is too good to build on, and the development would make it unsafe for children walking to school.
Plans to build a new pharmacy in Scalloway suffered a setback when the council's planning board turned down a planning application by Norsepharm Ltd.
The company were given permission by NHS Shetland to set up a pharmacy in the village, in February, despite local opposition and a rival bid from local doctors.
At Wednesday's planning board meeting, councillors refused to grant permission to build a shop and a two bedroom flat next to the Kiln Bar because there was not enough car parking and space for delivery trucks.
Twenty five people had objected to the plans.
A £500,000 project to build an 'unplugged' eco-tourism development on the uninhabited Shetland island of Linga has been approved by Shetland Islands Council's planning board.
The application, by locally born Texas businessman Robert Thomson, who owns the 50 acre island in Vaila Sound, 200 metres off the village of Walls, had previously been rejected by planners as it contravened local planning guidance relating to the repopulation of uninhabited islands.
But acting as the local review body, the planning board voted on Wednesday to approve in principle the development, which will see two disused cottages on the island restored, the land used for crofting once more, and a new jetty built.
Electricity will be generated using renewable sources, and sewage disposal will be handled by a reed bed. Future plans include a shore station and visitor centre in Walls.
Gary Robinson moved approval of the plan, and accepted a move from Bill Manson and Caroline Miller to stipulate that the council's responsibility for services to the island should end at Walls.
Councillor Robinson said the development offered a great opportunity and considerable economic and social benefits for the Walls area.