The Onions family, who own the Red Kite Touring Park, will now be able to build eight lodges at the site which is just off the B4518 road that leads up to Llyn Clywedog, outside Llanidloes.
Llanidloes Town Council had also supported the application and said that it would be “beneficial to the town and surrounding area".
The lodges will measure 40 feet by 20 feet and will have a living area, bedroom, bathroom and kitchen facilities.
Each lodge will have a parking space.
The application said the lodges would be classed as “caravans”, which means they can be moved, and will arrive on site “pre-assembled” and then be anchored onto a concrete base.
Senior planning officer at Powys County Council, Kate Bowen, said in her report that there had been some concerns and objections against the proposal.
The objectors believe there is already enough tourist accommodation in the area and that it would put more “strain” on community facilities and resources there.
Ms Bowen said: “The concerns within the public response are appreciated and have been carefully considered.
“However, the provision of tourist accommodation is supported throughout planning policy and given that it is not considered that the development would have an unacceptable impact upon the landscape, residential amenity, ecology or any other planning matter, it is concluded that the development is acceptable, subject to the use of conditions.
“Therefore, the recommendation is one of conditional consent.”
One of the conditions is that the lodges are used “only” for holiday accommodation and not as a person’s only or main home.
The caravan park was given planning approval originally in 2014 and has 66 developed touring caravan pitches, a site reception, warden’s lodge, and a toilet block.
The family also owns and runs the nearby Clywedog Riverside Park, which has 108 owner-occupied static holiday caravans.