Elected officials have voted down Tauranga's $55m museum project.
The decision came after a heated debate watched by a full public gallery.
The general theme of those who voted against the proposal was that while many members of the public may like the idea of the museum, they did not want one with a price tag of $55 million - even if the council's contribution was capped at $15m.
Councillors have also said no to spending $42.3 million new central library.
After the vote, split five to six, the issue was put aside to see if an alternative proposal can be worked up over the next couple of days.