A controversial plan for more than 200 homes has been approved on appeal.
The application for homes on the old Creams Mill site in Little Lever was blocked by the council over a year ago due to its impact on the Green Belt.
The applicant, Watson Homes, appealed to the Planning Inspectorate, which initiated an inquiry between November 22 and November 30 of last year.
After a consideration of the arguments for and against, the controversial plan was approved by inspector Nick Palmer in a decision which was issued on Monday (January 30).
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At the centre of these arguments for and against was whether the impact on the Green Belt was outweighed by the need for affordable housing and market housing in the area.
Mr Palmer said although the impact on the Green Belt was significant, in particular in terms of its appearance and character, the offer of more than 200 homes, 60 per cent of them described as affordable, was more significant still.
He said: "There is a desperate need for new housing in Bolton. The parties agree on this point."
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Other benefits identified included the restoration of the Bury and Bolton Canal, a boost to the biodiversity of the area, as well as the boost to the economy of the area provided by the construction work and the prospective residents.
Mr Palmer said the construction work could support more than 200 workers a year, while the prospective residents could spend more than £4 million a year.
He said: "The weights given to the benefits outweigh the harm to the Green Belt and other harm so as to amount to the very special circumstances needed to justify the development. This is an important material consideration which outweighs any conflict with development plan policies.
"For the reasons given, I conclude the appeal should be allowed," he added.
Rob Watson, of Watson Homes, said: "We are delighted to see the approval of our appeal for the regeneration of Creams Mill and Hall Lane.
"The inspector agreed there is a desperate need for new housing in Bolton and this development will play a significant role in the delivery of both affordable housing and market housing.
"Our development enables the restoration of the 1936 breach in the Manchester Bury Bolton Canal and returns this section of canal to water.
"We are excited to see the benefits this restoration will bring to Little Lever."
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The decision comes as a disappointment to opponents of the scheme, like the Little Lever Green Belt Action Group who protested against the scheme last year.
Sean Hornby, a councillor for Little Lever and Darcy Lever and supporter of the Green Belt Action Group, said it was 'a sad day'.
Cllr Hornby said: "It has been a long fight and on this occasion the residents have lost.
"It is a sad day, but we are where we are and the only benefit is that the canal will be restored. We will see what happens next."
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