An Bord Pleanala has approved 22 new homes at Rockbarton Court in Salthill despite local objections.
County planners approved the plans, which involve six new blocks, in May.
But an appeal was lodged by local residents on a wide ranging number of grounds.
They included impact on existing homes, inappropriate density, environmental impact and potential traffic issues.
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An Bord Pleanala has now approved the plans with revised conditions.