Plans for 350 homes at Welton have been approved by West Lindsey District Council.
The proposals from Beal Homes is to develop a 28.7ha site off Prebend Lane.
Opponents said the plan would create too much traffic, spoil open countryside and put too much pressure on schools and health facilities in Welton.
Ward councillor Dianne Rodgers (Ind) said the development was as big as Scothern and with William Farr School unable to expand, Faldingworth and Ingham would have to send their children elsewhere. It would lead to “overpopulation of a rural village and the destruction of human habitat.”
Coun Roger Patterson (Con-Scampton) said the homes would make Welton as big as Market Rasen, but without the facilities.
However, Beal Homes land director Richard Costell told planning committee the company had worked on the plan for 15 years and had met community concerns. Road junctions would be improved, the plans would create public open space, shops and provide retirement homes.
WLDC chairman Malcolm Parish claimed many “big pluses” that would “improve the scenario of Welton.”