A city in Ohio has shelved proposed anti-discrimination legislation which would have led to fines for people who discriminate against LGBT people.

The ordinance was proposed in Chillicothe, Ohio, and would have meant fines for those who discriminate in housing, business and other areas based on gender identity or sexual orientation.

The meeting on Wednesday night gathered around two hundred people, most of who cheered in favour of those speaking in opposition to the ordinance.

But the city council committee cancelled the proposed ordinance, withdrawing the plan.

The process for the ordinance will be restarted, and an updated proposal may be put forward in coming weeks.

Advocates for the ordinance say the city already has a problem with discrimination.

Speaking to the Associated Press, Sarah Wagner said she and her wife, who have four kids, have experienced discrimination.

“We have been subjected to homophobic slurs and spit on, been asked to not hold hands at local restaurants or asked to leave entirely,” she said.

“We’ve had to stand in line at the grocery store with our children while a woman at the next counter made loud remarks about ‘those people’ being an abomination.”

She also said one of her kids had been assaulted because a boy wanted to “prove” that she wasn’t gay herself.

According to Judge Jhan Corzine, who spoke to the Chillicothe Gazette, the proposal is flawed in several ways, but that proections should still be brought forward.

Those opposed to the measure, however; such as former council member Diane Carnes, say it will “create anger and division”.

She said: “I have never needed a law to treat people fairly… This kind of legislation will create anger and division.”