People in Bottisham have said building on green belt land is "inappropriate".
Plans for 170 homes have been approved, with around a third to be made as affordable housing.
The plans faced backlash from the community with nearly 100 objections being lodged.
Some expressed concerns around potential environmental damage, others highlighted the village already had care homes.
But the planning inspector said there were "very special circumstances" to allow the plans to go ahead.
The developer said the majority of the existing land will be turned into a park.
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