The homes are included in a series of planning applications for the Lincolnshire Lakes development being promoted by land investment fund, Lucent Group.
The applications approved include outline permission for the 3,000 homes, a retirement home, a village centre, health care facility and community facility.
Full planning permission was also granted for highway works to create a new junction to the M181 motorway and construction of the western section of the east-west link road.
A planning report said the Lincolnshire Lakes development area has been identified within the area’s core strategy planning document and has the potential to deliver 6,000 homes.
It said that, cumulatively, the applications would provide two of the six villages proposed within the council’s emerging Lincolnshire Lakes area action plan (AAP).
The report said that it is considered that the "policy background for the Lincolnshire Lakes development in which this application sits is a key element in the assessment of the ... applications and is well established. The suite of local planning policies in the core strategy and the AAP firmly supports the principle of development".
Objections to the plans included concerns about increased traffic and flood risk.
Recommending approval, the planning report said that, although the development would sit within a flood risk area, mitigation measures could be put in place to make the development acceptable, saying "the homes will be protected to a standard well above the minimum requirement of the Association of British Insurers which is 1:100yrs".
With regards to transport, the report said the development could actually alleviate existing transport problems in the area. It said: "The progression of the Lincolnshire Lakes project was not just to deal with increased traffic generated by the developments proposed but also to assist in resolving outstanding problems within the Scunthorpe and Bottesford transport infrastructure.
"Through the delivery of the Lincolnshire Lakes development, and more specifically the northern junction and east-west link road within the Lucent proposals (application 2), it is anticipated that heavily congested areas to the north of Scunthorpe, particularly at Berkeley Circle, will be relieved to a significant degree", it said.
Consultancy WSP worked on development of the planning applications.