A motion to retain at least 25 parking spaces in Uckfield High Street was turned down by the town council on Monday.
Cllr Paul Sparks also proposed there should be effective enforcement of the on-street parking restrictions.
Six councillors voted in favour and six against, with the final say going to chairman, Mayor of Uckfield cllr Ian Smith, who used his vote against the motion.
Several councillors said they should defer making a decision until the result of yesterday’s parish poll when residents had been given the chance to have their say.
Cllr Helen Firth said: “This is premature, we should wait until the public have had their say.”
Cllr Paul Meakins said it was good they were discussing the issue.
“I think we should take this opportunity to put a marker down,” he said.
Although he said he was ‘nervous of making any decision’, cllr Jeremy Hallett commented on the effect of the extra residents at Ridgewood Farm.
“They need to come up with genuine factors for why we should remove parking,” he said.
Cllr Michael Harker said the county councill decided to review everything, it was a ‘thorough and complete review’.
“They will do a lot of extensive work and come out with a number of traffic proposals,” he said.
Cllr Alan Whittaker was not sure about the removal of parking but enforcement was the key.
“I feel the poll is premature and to say this motion is premature is nonsense,” he said.
Residents gave their opinions before the debate started.
Josh Gibbens called the motion ‘premature’ and asked for the decision to be deferred until after the parish poll.
He was concerned any figure given for the number of spaces would then be binding and he questioned why members of the council had not spoken up for residents sooner.
Val Frost said at least 35 to 40 spaces should be retained plus loading/unloading bays and some disabled spaces to allow use of the Post Office.
She said waiting times should remain at an hour with no return within an hour.#
A 20mph limit was not needed in Church Street or High Street, she said.
Cllr Sparks also proposed a 20mph speed limit in Church Street from the junction with The Drive south down the High Street.
But county cllr Claire Dowling addressed the meeting from the public gallery to confirm this had already been agreed.