California voters soundly rejected a ballot measure that would have made it the first US state to legalise marijuana for recreational use.
The nation's eyes were on Proposition 19 because legalisation would have put the state at odds with federal drug laws. The Obama administration had said it would continue to prosecute people in California for possessing or growing marijuana.
But with nearly half of the vote counted, 56 per cent of Californians voted against the measure, while 44 per cent were in the "yes" camp.
A maverick move by California could also have inspired other states, as has been the case with medical marijuana.
In 1996, California led the nation with a ballot measure approving cannabis for medical purposes, and 13 other states have since followed suit.
Passage of Proposition 19 would also have had a financial impact because it cleared the way for local governments to regulate the "business side" of marijuana, including commercial cultivation and taxation.
Prop 19 supporters argued that ending prosecutions for marijuana possession would free up law enforcement resources and strike a blow against drug cartels, much as repealing the prohibition of alcohol in the 1930s crushed bootlegging by organised crime.
Supporters also asked voters to consider that marijuana generates an estimated $14 billion in sales annually in the state, revenue they considered ripe for taxation, especially at a time of deep budget deficits in California.
Those backing the measure took the defeat in stride. "The cannabis movement has been here, literally here in Oakland, since the 1960s and it's not going anywhere," said John Decker (26), a pizza restaurant worker.
Critics of Prop 19, including many in law enforcement, warned of various social harms of legalising cannabis, from declines in production and academic achievement to a rise in traffic and workplace accidents.
US attorney general Eric Holder said last month he would "vigorously enforce" federal drug laws in California if Prop 19 passed, and that threat seemed to loom large over voters yesterday.
"Californians recognised that legalising marijuana will not make our citizens healthier, solve California's budget crisis or reduce drug related violence in Mexico," said Gil Kerlikowske, the White House drug czar.
Reuters