On Tuesday, developers Greenway stunned campaigners by announcing they would not appeal a decision made by Aylesbury Vale District Council in April to reject an application for a new settlement between Winslow and the Horwoods, dubbed Winslow Green.
In a statement, Greenway spokesman Martyn Twigg said delays in the proposed East-West Rail Link and uncertainty over where Winslow's new railway station would be built had led to the decision.
However, the statement added: "We remain of the belief that the site has significant development potential and we will continue to promote it through the Local Development Framework process."
Frank Donlon, a resident of Little Horwood and a member of the Stop Winslow Green campaign group, said: "This is stunning news and I can hardly believe it!
"We fully expected Greenway to take their permitted six months before making a decision whether to appeal so we didn't expect to hear anything before October.
"Even then we assumed that we would then be fighting a long drawn-out appeal. The villagers of Little Horwood are ecstatic and we are so grateful to the residents of Great Horwood, Winslow and surrounding areas for their overwhelming support."
He said villagers would be celebrating the news for a long time to come.
Councillor Llew Monger, chairman of Winslow Town Council's development committee, said: "This is great news for Winslow and the Horwoods and proves the worth of concerted local action."
Shirley Millichip, from the Winslow Protection Society, said she and her fellow members were delighted by the news.
Proposals to build a new settlement on the site of Little Horwood's wartime airfield have encountered fierce opposition since they first surfaced more than five years ago.