The building of 180 new homes on a former office site in Bushey moved a step closer last night – despite an apparent conflict between two local planning authorities.

Veolia Water, which plans to build the mix of flats and houses at its former Blackwell House complex, in Aldenham Road, was told by Watford Borough Council last night that its controversial outline application was acceptable.

The council’s development control committee, after hearing evidence for and against, agreed the proposal by majority vote.

That agreement, however, was for just 50 of the homes.

Because of the site’s location, on the border of Watford and Hertsmere, the company had to file separate applications with each borough council – with the remaining 130 units scheduled to be judged simultaneously by the latter authority.

Those plans, however, were withdrawn at the eleventh hour after Hertsmere council officers suggested the development was too cramped for the site and recommended refusal.

However, despite the density of its share of the development being higher still (the result of conflicting urban and rurally weighted local plans) Watford Borough Council ruled there were no compelling reasons to reject the application.

Councillor Shirena Counter, member for Oxhey, urged the committee to think again, citing a lack of school places, facilities, and parking spaces. She said: “because this is an outline application so Veolia wants to cram in as much as possible to get as much [money] as possible for the site. This application should be refused.”

Alan Luto, from the Oxhey Village Environmental Group (OVEG) argued unsuccessfully that previous landfill usage of some of the earmarked development site should bring a halt the plans. He also argued that the proposed development would tower over neighbouring residents.

Councillor Iain Sharpe reminded him, however, that much of the London 2012 Olympic site was also built on a landfill area.

Veolia Water is likely to submit amended plans to Hertsmere Borough Council in the coming weeks.