Environmentalists were celebrating last night after plans for a massive housing development on virgin land were thrown out.

Bermuda Properties Ltd wanted to build up to 150 homes on White Crest Hill -- part of Catchment Hill -- as well as nine luxury houses in the same area.

However, yesterday the Development Applications Board dismissed the scheme saying the area was an open space of major importance.

It also seems likely the matter will lie dormant for the foreseeable future as BPL concentrates on its plan to help revitalise Marriott's Castle Harbour resort.

"I think after all these years, since the National Trust has argued that the Hill should be saved, we are pleased that the DAB has agreed with us.'' said Mr. Tim Marshall, chairman of the National Trust's environment committee.

"It is an important open space for the Island and it has been recognised as such by the DAB.

"I hope the developers will recognise the wishes of the people and leave the Hill alone,'' he added.

BPL originally applied for permission to develop the land in January 1992 and wanted to build between 120 and 150 "middle class homes'' as well as the nine luxury villas.

The 38-acre area, near Harrington Sound Post Office, is zoned for residential use although a review of the zoning was ordered by the Government towards the end of last year. Results of the review are still pending.

News of the plan sparked outrage among environmentalists who wanted the area, one of Bermuda's last forests, to remain untouched.

Most Bermudians questioned in a Department of Planning survey also wanted it to stay undeveloped, with 87 percent of questionnaires returned favouring its retention as open space.

The DAB refused three planning applications -- to build between 120 and 150 homes at White Crest Hill, which forms part of Catchment Hill, nine homes on Catchment Hill itself and plans for an access roadway.

In refusing the White Crest Hill scheme, the DAB said insufficient information was submitted, including an environmental analysis, to allow for a proper assessment of the plan.

It also said the number of homes proposed was "premature and contrary to the public interest'', adding: "The site forms a strategically significant tract DAB gives thumbs down to housing Similar reasons were cited for refusing the plan for nine homes, but the DAB added: "The site forms a strategically important tract of land which, in its existing predominantly undeveloped state, is of major visual and habitat importance.'' On the access road, the DAB said: "The western side of Catchment Hill, in its current undeveloped state, makes a major contribution to the open, rural character of the Island when viewed from the public road and neighbouring properties and as such should be retained for the open space needs of Bermuda.'' All three applications are entirely separate from BPL's plans to develop Ship's Hill and Tucker's Point to help revitalise the Marriott's Castle Harbour resort.

Last night, BPL general manager, Mr. Peter Parker, said he was extremely disappointed.

He denied previous claims that the homes were to be luxury condos for ex-pats and said the land was still zoned for residential use.

"Back in 1992 there was a need for these houses and we responded to that. We wanted to build middle-class homes for Bermudians, not ex-patriates,'' said Mr. Parker. "We are disappointed. We thought we were doing the right thing.

We thought we were doing what the Planning Department had suggested. We wanted to preserve the asset value of Catchment Hill to the company.''