Eltham couple Joanna and Terry Williams have been denied a building permit for a single-storey dwelling by the Victorian Civil and Administrative Tribunal today.
The shock decision has surprised legal experts who have been left dumbfounded by VCAT's ruling.
The WIlliams' planned to knocked down a double-storey house located on Arthur Street but were denied approval because the new dwelling would not fit in with the visual aesthetics of the wealthy suburb.
Outside VCAT, local Councillor John St. John Fitzgerald hailed the decision as a victory for Eltham residents.
"Every house in Eltham is a double or triple-storey dwelling and we don't want that to disappear," Fitzgerald said.
When asked if the decision reeked of NIMBYism, Fitzgerald replied: "Of course! NIMBY was invented in Eltham, you know!"