The catchment area for Lauriston Primary School in Hackney is one of the smallest ever. Children living more than 120 yards away are being turned away.
Headteacher Heather Rockhold said: "I sympathise with parents who don't get their child into Lauriston, but there are a number of fine schools in Hackney."
Disappointed parents suggest otherwise.
"Lauriston is the best school in Hackney, and I would not consider putting my daughter anywhere else considering the reputation of most of the schools," said Mandy McReedy, whose five-year-old, Lily, was refused a place because they live 270 yards from the school gate.
"Lauriston is the closest school to where we live. To be told I cannot send my daughter there is outrageous."