Local residents would have seen the antennae from their gardens and others feared possible health implications from radiation.
The 19 metre-high water tower in Colwood Lane, Bolney, is in the High Weald Area of Outstanding Natural Beauty and is clos
e to the High Weald Landscape Trail.
Airwave MMO2 Ltd appealed against Mid Sussex District Council's refusal of planning permission for a base station for its network plus three pole antennae on top of the tower, a ground level cabin and an acoustic shelter.
The planning inspector refused the appeal saying that the antennae would be "visually significant" and they and the other equipment and structures would cause "significant harm to the outlook from nearby residential properties".
"I do not consider the need for the proposed facility outweighs the visual intrusion the proposal would have within this area of particular environmental importance," the inspector said in his report.
Colwood Lane resident Paul Constantinou said campaigners would now wait and see if Airwave MMO2 removed the base station it had already built at the foot of the water tower.
"We are absolutely delighted," Mr Constantinou said. "I think it shows that if you are controlled and structured and disciplined in your approach to a protest then you will be listened to."
He added that a moratorium on so-called "Tetra masts" should be brought in until more research had been done on the health concerns surrounding them.
