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The Planning Inspectorate rejected the appeal by Grand Union Marine and Leisure Services Ltd after Solihull Metropolitan Borough Council threw it out in December 2009.
It had applied for a 140-boat facility for Green Belt land to the back of Wychwood Avenue, by Grove Farm.
Another plan, for Stripes Hill, was rejected and has also gone to appeal.
Inspector Claire Sherratt said “considerations advanced in support of the development, either individually or cumulatively, would not clearly outweigh the harm by reason of inappropriateness and the other harm”.
She found: “The development would have an urbanising impact that would not only result in a reduction of openness but would also result in encroachment into the countryside. The development would constitute inappropriate development in the Green Belt.”
Some 93 letters opposed the plan along with two petitions of 334 signatures. Meriden MP Caroline Spelman also opposed the scheme, heard at a three-day public inquiry in February.
A 300m road would have linked Jacobean Lane to the new facility, by a bridge over the canal.
Some 40 car parking spaces would have been provided.
The inspector found: “Whilst boats navigating the canal are not an uncommon or an inherently unattractive feature, I consider up to 140 boats moored in one location would have an adverse visual impact.”
The plan was supported by British Waterways, which suggested the project’s failure would “undermine the vitality and future of the Grand Union Canal”.
Yet the inspector found future demand for boats was “uncertain” because of the economic downturn
She said: “I am not persuaded that there is a pressing need at this time. Future demand is less certain given the economic climate.”
Projections of increased demand were based on 2007 data, she noted. In fact, 15.6 per cent of national moorings are un-used, some 5,612.
The inspector noted the plan would “undoubtedly, in my view, have some beneficial impact
on local services and facilities in Knowle and a wider area”.
A 200 berth marina would bring in £421,084 to within 20 miles of the site, she said.
But she said: “Whilst marina developments can act as a catalyst for regeneration, I do not find any support for regeneration needs in the surrounding area.”
However, she said the development would ensure “sufficient distances” from homes so that living conditions were “not unacceptably compromised” through noise or light.
Residents had expressed fears over noise, light, the impact on views and traffic.
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