The appeal for 12 affordable homes on land east of Merrington Road, in Bomere Heath, near Shrewsbury, has been allowed by a Government inspector who has also ordered Shropshire Council to pay costs to joint developers Severnside Housing Association and Shropshire Homes Ltd.
Residents and Bomere Heath Parish Council had objected to the plans over fears that raw sewage could flood homes in the Brook Road area and that there had been a lack of public consultation on the available sites.
The plans were thrown out by the council in February with Andrew Bannerman, councillor for Quarry and Coton Hill, claiming the lack of discussions surrounding the scheme had been "disturbing".
But Shropshire Councillor Liz Parsons, the only member to vote in favour of the plans, warned at the time that the reasons given were tenuous and would be vulnerable to an appeal.
Now planning inspector Sue Glover has ruled the new housing should be built despite admitting that some harm will be caused to the countryside.
In a report outlining her decision, she said: "The proposal is intended as an exception in order to meet a clear and undisputed need. There are no alternative sites available.
"I therefore consider that the need for affordable housing should prevail.
"This need outweighs the harm that I have identified to the character and appearance of the countryside, and the local objections to the appeal proposal."
The inspector also ruled Shropshire Council should pay the developers a partial award of costs for not fully justifying their reasons for refusal. The applicants have now been told to submit details to the council over the costs before an agreement between both parties is reached.