A plan for 32 homes in Wragby was approved by East Lindsey District Council despite concerns over overcrowding and congestion.
The application was lodged by Lincs Design Consultancy for the development on land to the north of Thronfield, Louth Road.
Planning permission was sought for outline approval on the site.
Wragby Parish Council had objected on the grounds that the designs would add to the excessive number of houses already proposed in and around the village.
Other objections were lodged against proposed access to the site on Queen Elizabeth Street, as outlined in the plan.
Those opposed said that the street is notoriously busy and is not suitable for sole access to a development of more than 30 homes.
Despite the concern, the local authority approved the application.
The developer said that the site is identified in the council’s housing strategy and is suitable for development.
They added that the village is suitable for a development of its kind.
In a supporting statement to the council, they said: “The large village of Wragby is a sustainable location for development and has a range of residential amenities including shops, library, community hub, medical facilities, playing fields, cafes/takeways, public houses, church and primary school.”