Engineering firm Centrax has won a three-year battle to develop a 14-acre business park near its Newton Abbot factory.
It could mean the creation of hundreds of jobs and workshops developed in association with Teignbridge Council and the Regional Development Agency.
The decision was made this week following a public inquiry, the firm having appealed against refusal of its plans.
The go-ahead also been given for the creation of new sports pitches, new access roads and changes to the existing highways.
It brings to an end a struggle between Centrax, residents and Teignbridge Council which began in January 2006.
The firm's first bid for an industrial estate was rejected because of the likely impact on the Area of Great Landscape Value (AGLV) in which the development site lies.
Around 250 objections were raised, including 180 letters from residents.
In July 2007 a second application was also turned down on similar grounds by district councillors who rejected the advice of their planning officers to recommend approval.
Centrax subsequently launched the appeal which resulted in this week's decision, almost three years after the plans first went in.
In granting approval, planning inspector Chris Gossop and secretary of state Margaret Beckett, said there was 'a significant shortfall' of employment land in the town.
They also found that the effect on the AGLV would be 'limited' and there would be 'scope to create a development that would, at least partially, blend into the landscape'.
Another factor in the scheme's favour was that road changes would result in 'significantly less' traffic in Haccombe Path.
The news has prompted mixed responses.
The site lies within Haccombe with Coombe where chairman of the parish council, Cllr Andra Johnstone [correct spelling], said she was 'very disappointed' and not convinced of the need for additional business units.
'I feel if this had been an application for something like affordable housing there would have been greater sympathy towards it,' she said.
Teignbridge Council leader, Cllr Alan Connett, welcomed the decision having backed the business park from the start.
'I supported this application which was lodged pre-credit crunch because it was good for Centrax as it would sustain a quality employer,' he said.
'It also offered a very great potential for new jobs in the area, something we desperately needed then and even more so now.
'I think that while I recognise the concerns of those who opposed the application, in the see-saw of planning appeals the right decision was made.
'Newton Abbot needs jobs, Teignbridge needs jobs.'
Cllr Connett warned last year that Teignbridge could face a 'mega-bill' if Centrax won the appeal and demanded costs.
Council spokesman Michelle Kenney said no application for costs had been received.