West Auckland will get more control over local issues when it gets its own parish council next year.
Almost 300 residents of the community near Bishop Auckland backed a campaign calling for the formation of a parish council.
Public meetings were held and a steering group formed to gather names on a petition supporting the proposal.
The petition persuaded Wear Valley District Council to back the idea and forward the plan for Government approval. The Secretary of State for Environment, Food and Rural Affairs, Margaret Beckett, has approved the plan, and if Deputy Prime Minister John Prescott formally agrees, the council will be created in spring, with elections on May 1.
There will be two wards, divided by Darlington Road, each with six representatives.
Wear Valley District Councillor John Ferguson, a member of the steering committee, said: "I am certain a parish council can only be a good thing for the community of West Auckland. It will give the village greater independence and more say over local issues."
The formation of a parish council will also give the village more control over how money is spent in the area.
Coun Ferguson said: "It is unclear how much money the parish council will have control of, but it will certainly be beneficial for villagers, through their elected representatives, to have their say how it is spent."
Campaigners also hope a parish council will have greater influence over district council issues, including planning applications.
It was a dispute over proposals for a meat processing factory that initially raised the call for greater independence.
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