Permission has been granted for the Adamstown Strategic Development Zone (ASDZ) at Lucan, west Dublin.
The development will consist of more than 10,000 dwellings on a 500-acre site on a phased basis.
When complete, the area will also feature 125,000 square metres of retail, commercial and leisure development, together with schools, parks, roads, a new railway station and two dedicated busways (QBCs).
An Bord Pleanála announced today it had approved the submissions, but only on condition that 26 modifications to the plans were met. These modifications mainly refer to roadbuilding in the area and the provision of services for residents, including schools and recreational facilities.
The site adjoins the Dublin-Kildare railway line and is about ten miles west of Dublin city centre. There will be 13 phases of development, the first comprising 1,000 houses, with 800 to be built in subsequent tranches.
The ASDZ plan was supported by the majority of members of South Dublin County Council.
The Labour Party's Senator Joanna Tuffy welcomed the decision, saying it vindicated the council's strategy, which would ensure that "the bad, developer-driven planning mistakes of the past, as urban sprawl and abscence of vital infrastructure are not repeated." She said the plan was the best prospect for the future of the local population.
However, the Green Party has threatened to lodge a complaint with the European Commission over what it claimed was the council's refusal to carry out an Environmental Impact Assessment for the Adamstown development.
Mr Paul Gogarty, Dublin Mid-West Green Party TD, described the decision as "a major blow for sustainable development in Lucan".
A series of oral hearings were held last July in the Gresham Hotel, Dublin. Those who addressed the hearing included Chartridge Ltd, the consortium of developers behind the scheme, local residents groups and representatives from South Dublin County Council.
Among those due to make submissions were Ms Hazel Lawlor, the wife of the former TD Mr Liam Lawlor. Ms Lawlor wanted to have the family home and lands in Lucan rezoned to allow them to be included in the 550-acre Adamstown site. However, she failed to appear when scheduled at the hearings.
Mr Lawlor stands to earn up to €2.5 million from the development as he is part-owner of a sewage system already in place under the site. He said at the Mahon tribunal in July that 2,000 out of the 10,000 houses planned for Adamstown would have to be drained by pipes in which he claims a 25 per cent interest.