South Holland District Council has approved plans for 215 homes in Long Sutton.
OGE Chapman and Son lodged plans for the residential development on land between Seagate Road and the B1359 Wisbech Road.
The site was earmarked for development under the emerging South East Lincolnshire local plan.
The application sought outline planning permission to build a residential development on the site with access to be considered.
Long Sutton Parish Council objected to the plans saying that the proposal falls outside the development boundary under South Holland District Council’s current plan.
But, the local authority approved the plan following recommendations by the council’s planning officer.
A reserved matters application for the site is expected to be submitted at a later date.
No objection was lodged against the application by any council department.
A total of 53 of the proposed homes would need to be affordable housing under a section 106 agreement.
Contributions will also be required for healthcare and local education provision.
In a design and access statement, the developer said that the application will help with housing supply in the area.
They said: “This application assists with supporting the emerging local plan requirements, in that it provides the next step forward and allows a developer to be bought on board to ensure the site is taken forward and developed in a timely manner as required by the local plan.”