Amey's Kennels applied to Campaspe Shire Council to amend its application to increase the allowed number of dogs on their property from 100 to 150.
But the move was slammed by animal activists.
“It was distressing to see this proposed amendment,” Oscar's Law (an organisation which aims to abolish puppy factories) founder Debra Tranter said.
Echuca Animal Rescue also said it was troubling.
“We are strongly opposed to the intensive breeding of companion animals. We don’t need more breeding; we need less,” EARS media liaison Rhonda Taylor said.
Breeding facility owner Sreejesh Thuluvan Kirali said the backlash had caused him to withdraw the application.
“There is a lot of misunderstanding and negativity surrounding this application and that's why we decided to withdraw,” he said.
“The planning department of Campaspe Shire counts one puppy as an adult dog. Therefore, as a technicality, we’re required to amend our numbers, but we decided we could operate without the increase.”
Ms Tranter said she was happy with the outcome.
“We are very pleased that this permit to expand has been withdrawn, and certainly not surprised at the level of community concern,” she said.
Amey's Kennels has also changed its plans for the land they applied to use in NSW.
Originally going to be used to house another animal training and breeding facility near Moama, the team has now decided to enter the world of agriculture.
“I'm planning to use the land to start up a date farm,” Mr Thuluvan Kirali said.
“We're just going through the motions of working on this plan and will hopefully get everything in place soon.”