Outline plans for 55 homes in Woodgate have been given the nod by Arun District Council less than a year after a similar application was refused.
The application, for Wings Nursery, will include two access points on to the A29 Lidsey Road, and was approved by the development control committee on Wednesday.
Issues such as the design of the site will be decided at a later date.
Last August, the council refused a similar application on the grounds that the site was outside the built-up area boundary and the development did not provide enough affordable housing or contributions to pay for the upkeep of local infrastructure.
This latest application allows for 18 affordable homes.
It also includes money for several infrastructure projects such as: half a million pounds towards the planned realignment of the A29; money to widen the footpath between the site and the nearby Prince of Wales pub; improved bus shelters with real-time passenger information outside the site; and more than £54,000 to the NHS for work at The Croft GP surgery.
While David Huntley (Ind, Pagham) said it was ‘regrettable’ to lose ‘versatile agricultural land’, the application was approved by the vast majority of councillors.