Outline permission for 340 new homes and a primary school has been granted after proposals were resubmitted following an earlier rejection.
The development is planned for farmland near Sawtry in Cambridgeshire.
Outline permission was narrowly given by Huntingdonshire District Council, with seven voting for, and six against, citing encroachment on the countryside.
The council said more specific plans would need to be submitted before development could begin.
The proposals were put forward a second time by Larkfleet Homes, whose initial plans were rejected in May, the Local Democracy Reporting Service said.
Both Sawtry and Glatton parish councils were among those objecting to the application.
However, a spokeswoman for the developer said the new plan included a "comprehensive package" of landscaping schemes to address councillors' concerns about the visual impact and encroachment of the scheme.
Of the 340 homes, 40% - 136 units - will be required to be affordable housing.
More than £4m is expected to be secured in community contributions, including land and a £2.8m contribution to Cambridgeshire County Council for the primary school, which will have room for up to 420 pupils.
The council's planning officer's report on the resubmitted proposal said it was "considered to provide significant mitigation such that the harm in landscape and visual impact terms is minimised and is not considered sufficient to support a reason for refusal".
The council's committee granted planning approval subject to finalising the Section 106 agreement for community contributions.