The musician had submitted plans to build five mansions on a ridgeline above Malibu but it was rejected by the California Coastal Commission on an 8-4 vote, according to the LA Times.
The agency's executive director, Peter Douglas, said in an interview after the vote had been completed: 'In 38 years of this commission's existence, this is one of the three worst projects that I've seen in terms of environmental devastation.'
The Edge, whose real name is David Evans, has spent the last five years trying to get a permit to build a house for himself as well as four others in the area.
Douglas added that he thought the matter could end up in court.