West Lindsey District Council has approved plans for a 200-home development in Gainsborough.
The plan will see the homes built on land off Carr Lane and Lea Road in the town.
Developers Wright Investments Developments Ltd will now build 220 homes on the land known as Gainsborough Riverside.
The proposal will also see 361 car parking spaces and commercial space on the four hectare site.
Now, the council has given permission for the plans to go ahead.
The development will include ten one bedroom flats, 79 two-bedroom, 61 three-bedroom, 48 three-bed houses and 22 four-bedroom.
In a design and access statement, the applicant said the plans would help to improve the riverside area of the town.
They said: “The development of Gainsborough Riverside will see the creation of a new neighbourhood and community, which has been the primary focus of the vision and masterplan.
“The development will provide residential and commercial use and will extend and enhance the riverside walk, supporting leisure and recreation.”