Concerns were raised that odours from a proposed crematorium near Kanturk could 'linger' in the valley around the site.
An Bord Pleanála refused permission for the crematorium, which would have been the second in Cork.
Classic Lodges (Ireland) Ltd had sought permission to construct the facility on the site of the former Duhallow Park Hotel in Kanturk.
It was refused planning by Cork County Council in January as planners weren't satisfied the development wouldn't cause "serious air pollution", though developers appealed this to An Bord Pleanála, claiming there would be no impact on air quality, the environment or to public health.
During the appeals process, local residents raised concerns about the impact of the crematorium air quality, claiming the applicant's air dispersal model "does not appear to take into account the setting of the site within a valley".
"Under certain atmospheric conditions, e.g. inversion, inadequate dispersion would occur and so emissions may remain close to the ground," the Dromcummer Residents' Association said.
"Experiences of odours from agricultural operations within the valley indicates that they tend not to disperse and so these odours linger."
In assessing the complaints, An Bord Pleanála's inspector said the cremation process "would have environmental impacts in terms of noise and emissions to the air" but said the air quality report submitted indicated pollutants would remain within limit values.
The inspector said, based on the information provided, he "was not satisfied" the development would not adversely affect the integrity of the River Blackwater. He also warned that access would be via the N72, leading to slow moving funeral corteges travelling along the road which would "adversely affect this road's operating efficiency".