Swindon Borough Council approved the plans at a meeting of its planning committee yesterday.
The plans would see the construction of up to 2,380 homes on agricultural land at South Marston on the eastern edge of Swindon.
Alongside the homes, the development would include a mixed-use local centre for retail and other services; up to 1,000 square metres of employment space; two schools and 76 hectares of green space.
According to a planning report, which recommended approval, the site is allocated within its adopted local plan as part of the New Eastern Villages (NEV) strategic site allocation.
It said that the NEV is also supported by a series of supplementary planning documents.
However, the report said that part of the proposed site falls outside of the NEV boundary and this was one area of conflict with the local plan.
But planners went on to say that "a material consideration in the assessment of this application is the current shortfall in housing supply in Swindon Borough that has been identified".
The report said that the development would help increase and maintain a housing land supply and, whilst outside of the NEV allocation boundary, "would not cause adverse effects".
Planners said that there is "an acknowledged need to meet the borough’s housing and economic requirements for growth in accordance with the Swindon Borough Local Plan 2026".
The report concluded that the application "meets the detailed requirements of the local plan in terms of demonstrating sustainability and broad compliance with relevant policies, including that it will satisfactorily mitigate the overall impacts of the development".