Nearly 90 new houses and 33 flats will be built in Bushey after a planning committee approved the application this evening.
Residents previously objected to the plans for the Blackwell House site, in Aldenham Road, but councillors approved the application unanimously.
Among residents' concerns was additional traffic congestion and a lack of amenity space within the build.
However, councillors on the Bushey and Aldenham planning committee had no objections to the plans and were advised the build would not make a significant difference to already-high traffic volumes.
The Aldenham Road site sits on the border of Hertsmere and Watford, meaning two applications were submitted to the different authorities by site owners Veolia Water.
Watford Borough Council's development control committee accepted proposals for 50 units on its side of the site in February.
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