An Bord Pleanala has approved plans to replace a derelict pub and shop in Caltra with housing.
Padraig & Margaret Killilea had sought to knock the two story building on the R358, and replace it with 3 terraced homes.
The plans were refused by county planners last year, largely due to concerns planners had about wastewater treatment and effluent disposal.
And, following an appeal, An Bord Pleanala's own inspector also recommended refusal on similar grounds.
But they were over-ruled by the board - who felt the wastewater arrangements were an improvement on existing infrastructure, in-line with guidance, and wouldn't pose any risk to conservation sites.
The development can now go ahead, subject to routine conditions.