The go-ahead has been given to an outline application for 30 new homes to be built on the outskirts of Wragby.
The scheme, off Louth Road, had generated objections from some residents concerned about potential “community, amenity and road safety issues”.
But at an East Lindsey District Council planning committee meeting last week, members overwhelmingly backed the recommendation of case officer Jane Baker that the proposed development - on a 1.5-hectare grassed field - should be approved.
She said: “The application site lies in a sustainable location and could provide a development that would reflect the character of Wragby.”
Assuming the project goes ahead, developers will be invited to contribute £12,210 towards improving local health facilities and £67,658 towards increasing capacity of the village primary school.
The successful applicants are Messrs M. Phillipson and J. Powell.