Outline planning permission for five new homes in the Brigg area has been granted by North Lincolnshire Council's Planning Committee, comprising elected councillors.
The council approved an application to erect the detached dwellings (including demolition of an existing nursery building), with all matters reserved for subsequent approval, at Sturton Nurseries, Main Street, Sturton (within Scawby parish).
Scawby Parish Council objected, saying the proposed development "is currently outside the building development line."
However, council planning staff recommended granting permission, and the committee agreed.
A report prepared by staff for councillors to consider said: "The proposed development conflicts with some of the restrictive policies of the development plan due to the site being located outside defined development limits where residential development is not normally supported.
"However, the proposal is considered to constitute sustainable development which would make an important contribution towards meeting a proven shortfall in the provision of housing land within North Lincolnshire.
"Given the lack of a demonstrable five-year supply of deliverable housing sites, it is considered that the benefits of the proposed development, with regard to the delivery of housing and redevelopment of a commercial site located in a predominantly residential area, must be given significant weight in the planning balance."
The report said the adverse impacts of the development were considered to be limited "and do not significantly and demonstrably outweigh the benefits."