Councillors have approved plans for 127 new houses on the edge of Leyburn.
Members of Richmondshire District Council voted in favour of the controversial scheme on fields at Hill Top Farm.
A mix of detached, semi-detached and terraced properties will now be built on the site, with 22 bungalows also planned.
Of the 127 homes, 28 will be available as discounted first homes to buy and ten will be designated as affordable homes to rent.
The application was submitted by Yorvik Homes.
Managing directer Matthew Gath said after the meeting: “I am happy for the young people of Leyburn who are in desperate need of housing.
“There are a few obstacles to overcome before development can start and we will be working with the relevant authorities to address the issues that have been raised as part of the application today.”
The plans were approved after access to the development was moved 10 metres further west along Moor Road than was originally planned so it was not opposite North Yorkshire County Council’s Highway Department.
Public open spaces will be created as part of the development.
A public access will also be built to Thornborough Hall Gardens to link the housing with Leyburn Town Centre.
The application had the support of Leyburn Town Council, which says more housing is needed in the town.
However, more than 50 people objected.
Issues raised included concerns the development could cause flooding in the town, worries about insufficient parking, health services and spaces at the local primary school and concern that the proposed pedestrian access through Thornborough Woods would not be suitable.
Concerns were also raised that residents of the new housing would use Woodburn Drive, which is a private road with no right of way.
On condition of planning being granted the developer, Yorvik Homes, has agreed to pay £363,693 towards an extension at Leyburn Primary School.
A further £150,000 will be provided to improve bus links to the new estate.