Sedgefield will have a new children's nursery after councillors decided to reject advice from their planning officers.
But the application for the nursery at North End has only been given temporary permission for a year, to monitor potential traffic problems.
The need for extra pre-school places in the village has long been recognised, but three applications have been turned down in the past year.
Planning officers at Sedgefield Borough Council had recommended that councillors refuse permission for the latest proposal.
The plan drew also strong objections from Durham County Council, which said there was not enough car parking spaces and the scheme could lead to traffic congestion and road safety problems.
Councillors decided to view the site and made a visit yesterday.
Councillor Kester Noble, chairman of the authority's development control committee, said the demand for the service was the most important factor in the decision.
He said: "I think that when the councillors went on site they realised that parking is a problem in Sedgefield.
"But they also know there is a great need for child care provision in Sedgefield.
"We have turned three down in the last year, and we realise there is a need for one. It is just a case of striking a balance as to where it could go."
Councillors decided there would be ample car parking provision at 7.30am, when parents would be taking their children to the nursery.
Coun Noble said there would be no highways issues if a minibus was available to take children to and from nearby West Park Lane.
Jane Thompson, who owns the house to be converted into the nursery, said she was delighted at the outcome.
She said: "It is now up to us to make sure that parking isn't a problem - that is in our own interest.
"We are not planning on putting all this money into it just to be running it for a year."
It will take about six months for the nursery to be properly registered, and a new application will have to be submitted a year after that.
The nursery, which does not yet have a name, will have spaces for 20 children.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article