A move to allow minor housing developments, including conversion of disused barns in rural areas, has been welcomed.
Harrogate Borough Council's environment scrutiny commission voted to drop a clause in planning policy, and the issue will now be considered at cabinet level.
Villages have been labelled unsustainable if they lack vital facilities, including a shop, public transport, employment or a school.
Some small infill housing and barn conversions have been refused planning permission under the policy.
Planners have said development in unsustainable locations could increase the use of cars where there is little or no public transport.
Councillor Margaret Atkinson, member for Kirkby Mal-zeard, near Ripon, who back-ed the idea of dropping the sustainable location clause, said: "I think this move will be widely welcomed."
She said under the sustainable system a lot of small barn conversions were rejected despite being in suitable places. It also meant that in some cases an eyesore barn remained when it could have been turned into a home.
Chief planner David Allenby said advantages of deleting the sustainable location requirement would make the housing policy simpler.
"It would avoid a potential large number of future objections to the policy from pro-development interests in less sustainable settlements."
He said that it would also help to ensure a continuing supply of new housing in the district's smaller villages.
Villages deemed unsustainable include: Aldfield, Bald-ersby, Ellingstring, Fearby, Galphay, Grantley, Grewelthorpe, Healey, High Ellington, Laverton, Markington, Melmerby, Mickley, Sawley, Studley Roger, Swinton, Wath, Wilsill, Winksley and Worm-ald Green.
Sustainable communities include: Bishop Monkton, Burton Leonard, Copt Hewick, Dishforth, Kirkby Malzeard, Littlethorpe, Marton-cum-Grafton, Masham, Minskip, North Stainley, Sharow and Skelton.
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