CALA Management/Kensington & Edinburgh Estates appealed the decision of West Lothian Council to refuse planning permission for the proposals at a 3.3 hectare site at Blackness Road.
The housing plan included four and five bedroom family houses with seven of the 49 units made up of social housing.
The council declined the application on grounds that included concerns over the effect the housing would have on school capacity in the area and potential drainage problems.
Scottish Government Reporter Michael J P Cunliffe dismissed the drainage concerns following consultations with Scottish Water and SEPA, but the issue of school capacities remained a major stumbling block in regards to future provision in schools.
It was concluded that there was “insufficient secondary school accommodation to meet the needs of the development”.
Mr Cunliffe said in his report that the proposal fails to comply with local plan policies.
He added: “I consider that this failure and its potential consequences are sufficiently significant to outweigh the development plan policies that support the development, and to conclude that the proposal would not accord overall with the provisions of the development plan.”