The village of Croy is in line for 100 new homes after lengthy discussions by Highland councillors.
Members of the south planning committee gave the scheme the go-ahead on condition that a liaison committee is formed to oversee details of the Scotia Homes development on the site called Highwood.
The liaison committee, which will involve the local community, local councillors and the developer, was agreed after councillors expressed concern at speeding traffic using the B9006 road "as an alternative to the A96" Inverness to Nairn road.
Concern was also voiced about the local school coming under pressure from an influx of new residents, and a potential for surface water to reach already polluted Loch Flemington nearby.
Cllr Roddy Balfour said there had been lots of discussions with the developer but nothing really resolved. He said: "The B9006 is getting busier and busier. It is not a quiet country road any more, it is an alternative to the A96.
Council leader Margaret Davidson said: "It is a good site but there are some real site issues and local people need to be working them through."
She suggested the liaison committee, seconded by Cllr Bill Lobban, and with that amendment the plan was approved.
Scotia Homes said: "We look forward to continuing close working relations in order to deliver this exciting development."