The Nova Scotia government has rejected an application from Snow Island Salmon to allow a fish farm in Shoal Bay.
Fisheries and Aquaculture Minister Sterling Belliveau says during the 22-month review process, Fisheries and Oceans Canada expressed concern about the salmon farm's impact on wild salmon in the bay near Sheet Harbour.
The federal department said the site would represent a moderate risk to wild salmon.
The province says it is the first time Fisheries and Oceans has described a proposed fish farm as representing a moderate risk to wild salmon.
Belliveau says the province's decision is not a sign that the government is changing its support for fish farms, which was part of its aquaculture strategy released last year.
There has been opposition to fish farms around Nova Scotia, including proposals by Snow Island Salmon to develop farms in Spry Harbour, Shoal Bay and Beaver Harbour on the province's Eastern Shore.