The unanimous decision came after more than 200 people spoke out against the store during a meeting.
Members of the planning commission said the developer's plans did not fit with the style of the area.
Hundreds of members of the historic Glen Allen community banded together to try to stop the store from being built in their neighborhood.
Many living nearby were worried the new construction would ruin their historic neighborhood, and bring down their property values.
Rhonda Abernathy, who owns the Glen Allen Supermarket across the street from where the Dollar General would go, helped orchestrate the effort to stop the store from coming.
Abernathy said Dollar General can operate more cheaply than she can, and “it’s possible” the store would force her to close her mom and pop store.
Residents also complained about the “traffic, the hou rs, the people.”
The developers can still appeal the decision.