Villagers in Ascott-under-Wychwood are pressing planners to forego strict development policies so they can have a shop.
The only store in the village closed five years ago, but it could now be replaced as part of a housing redevelopment in High Street.
A revised scheme by Empire Homes was approved by West Oxfordshire District Council's uplands planning sub-committee.
But consent was withdrawn by officers because it narrowly failed to meet criteria governing the size of the site.
The application will now be decided by the full planning committee in the New Year.
Villagers are pressing councillors to approve the scheme for nine houses and flats and a shop on a site at Corner House Farm.
The need for a village shop received 100 per cent support in a parish referendum.
Parish council chairman Nigel Braithwaite said: "We are becoming increasingly frustrated and upset at the inability of the planning process to deliver us a new shop.
"There are still a few people here who have to walk or cycle to the nearest shop, two miles away in Shipton- under-Wychwood."
The previous village shop in Ascott operated for about 70 years, but closed when the leaseholder died.
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