The musician, whose real name is David Evans, staged a 14-year legal fight to build five large, eco-friendly homes dubbed Leaves in the Wind in an undeveloped section of the Santa Monica Mountains west of Los Angeles.
The state Supreme Court decided last week not to review a lower court ruling, which denied approval to build on the land after the Sierra Club sued to block construction.
The lower court said the California Coastal Commission improperly granted Evans' 2015 permit.
The compound's green pitch didn't get very far with neighboring residents and environmental groups, which raised concerns about biological and visual effects in such sensitive habitat.
Sierra Club lawyer Dean Wallraff said Wednesday that the $100 million development would have been a "scar" on an untouched hillside.
Evans' representatives didn't respond to requests for comment.
If Evans wants to pursue the building process again, he has to start at the beginning by reapplying to the Los Angeles County Department of Regional Planning.
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