Approval has been granted for 31 homes in Stilton on the site of an ongoing planning dispute over other larger plans.
Huntingdonshire District Council's development management committee voted by a majority on November 18 to grant outline planning permission for the application, submitted by Caddick Land and the landowner.
Outline planning permission for 90 homes on the site - farmland between 68 to 82 North Street and the A1M - was rejected in February, but the applicant is appealing that refusal.
That development was rejected "due to an unacceptable impact on the residential amenity of future occupants due to high noise and poor air quality levels from the A1M, as well as concerns regarding school capacity at Stilton Primary School".
This latest application was recommended for approval by planning officers, and the meeting heard that no statutory consultees had objected.
Before permission was granted, the agent for the applicant, Mark Lane, was asked by the committee if approval would result in the appeal against refusal for the larger application being withdrawn.
Mr Lane replied: "I would have to take advice on that, and I am not in a position to answer that".
Vice-chairman of Stilton Parish Council, Councillor Dr Keith Bull, described 31 homes on the site as "excessive" and said when considered in addition to other developments in the area, it is "not sustainable and gives no clear benefit".
He said the noise and air quality factors that formed part of the basis to reject a previous application on the site "still remain".
Cllr Marge Beuttell said the application "flies in the face of the local plan," which classified Stilton as a "small village".
She said together an application for outline planning permission which was granted in April this year for 70 homes on land west of High Street was now set for a 10 per cent increase in the population. She said this was contrary to the local plan which said there was a case for organic growth.
Mr Lane, the agent for the applicant, said he was "aware of local concerns".
He said the development is a third of the scale of the previous application and further from the A1M. And he said the evidence showed there is primary school capacity.
A number of councillors spoke out against elements of the proposal but said they could not find material reasons to reject it.
The application was passed, with councillors voting nine for, four against, and one abstention.