A permanent floating marina at Constitution Dock in Hobart will no longer go ahead.
TasPorts says it has withdrawn a development application for a 24-berth marina on Hobart's waterfront, which would have accommodated some of the 150 boats expected to sail in the Sydney to Hobart Yacht Race.
Organisers say it's the biggest fleet in around 20 years.
The Hobart City Council's planning committee had previously recommended the marina be rejected because of heritage concerns.
The State Government says it will collaborate with TasPorts and the planning committee to address overcrowding during the event, while race organisers are looking at other options.