McDonald's cannot open a store in the Barossa Valley, a major wine-producing region and tourist destination of South Australia, the Development Assessment Panel has ruled.

The Barossa Council Development Assessment Panel voted six votes to one to reject the Barossa Hub development, which included plans for a McDonald's restaurant.

The ruling ended a long-running battle that had turned locals into arch enemies, with fine food and wine lovers among those who have fought a battle to keep the fast food chain out, while others wanted easy access to fast food.

While one side claims the presence of a McDonald's in Nuriootpa would cheapen the region's gourmet integrity, others argue the fast food restaurant would create job opportunities for young people and provide an affordable dining option.

Peter Lehmann Wineries export manager Howard Duncan, who represent residents opposed the development, said "Within the development plan of the town, there is a desired character statement which says there is to be no additional fast-food restaurant in the design."

"This is a good result for the planning of the town."

Meanwhile, developer Ian Mader is examining his options after the formal rejection.

MasterPlan Director Greg Vincent who was representing the applicant, Hames Sharley, said "There is no appeal rights for the applicant, and they will now need to consider their future options at this point."

The McDonald's development was part of a proposal submitted to the council, which included the demolition of buildings, the construction of retail showrooms, a warehouse, car parking and landscaping at the site.

The Barossa is not the first tourist area to fight a plan for McDonald's to move in. Others such as the Blue Mountains in New South Wales have seen lengthy battles against planned fast food outlets.