Hamilton, Larkhall and Stonehouse MSP Christina McKelvie revealed last night that the Scottish Environmental Protection Agency (SEPA) had told her that Scotgen (South Lanarkshire) Ltd has withdrawn its application for a permit to build an incinerator in Stonehouse.
Ms McKelvie, along with the community's Dovesdale Action group, has long opposed and fought the application – with over 24,000 people objecting in a consultation to the proposal.
Thrilled residents last night celebrated the news.
Gareth Jones, spokesman for the Dovesdale Action group, said: "The decision of Scotgen not to proceed with a licence to operate an incinerator at Dovesdale is welcome news for the 24,000 people who objected to the original planning application approved by South Lanarkshire Council.
"The campaign is not over but we feel this is a major step forward in the fight to prevent an incinerator being constructed at Dovesdale."
SEPA confirmed that Scotgen said it was to voluntarily withdraw its application after being denied an extension on a deadline it was given to answer a number of SEPA questions on the application.
Meanwhile, a judge has rejected North Lanarkshire Council's appeal against a Scottish Government decision to approve plans for a waste management plant.
Shore Energy wanted to process 160,000 tonnes of waste a year at a site in Carnbroe, Coatbridge.
The council challenged Holyrood's decision at the Court of Session in Edinburgh, but Lord Stewart threw it out.