A £10 million scheme to move the B3193 between Rixey Park and Abbrook, Kingsteignton, has been approved by Devon County Council and secured up to 100 years' worth of clay reserves in the process.
Landowner Sibelco already had permission to alter the route but came up with changes in response to local wishes to have the new road further away from homes.
Later the firm also asked to be allowed to tip additional clay waste at its Preston Manor Works.
Predictions that aspect of the project might generate widespread opposition failed to come true.
Now the new 1.6 mile route, which will incorporate parts of John Acres Lane and emerge near Sandygate, could be operational by 2015.
Only the stretch of existing road from Newcross to Lower Preston will be kept to allow access to homes and Sampson's Farm Hotel.
Gary Stringer, Sibelco's UK director of resources, said the project was one of the biggest investments the firm had made in south Devon and would secure the jobs of 200 people it directly employed, as well as those of contractors.
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