"The reform would have made some frightening changes in our country," said Astrid Badell, an 18-year-old Venezuelan.

"It would have practically been a copy of the Cuban constitution, and that would have been a big step backward."

The final result was close run -- 51% voted no against 49% voting yes.

Chavez was his usual bullish self in the face of defeat.

"This is not a defeat. This is another 'for now,'" he said, echoing the statement he made after his first attempt to wrest power in a 1992 coup d'etat.

As well as scrapping term limits on Chavez's rule, the proposed reforms would have boosted his powers to seize private property and censor the media.

The referendum drew opposition from many sections of society including students, business groups, opposition parties, human rights groups, the Catholic Church, former political allies and even his normally loyal ex-wife.

Once news of Chavez's defeat became known, the streets of Caracas began filling with opposition activists cheering, honking horns and waving flags out of car windows.

"Venezuela said 'No' to socialism, Venezuela said 'Yes' to democracy," said Leopoldo Lopez, the popular Mayor of the Chacao Municipality of Caracas.