Sedgemoor District Council granted permission for the North East Bridgwater scheme, which will create 110,000m2 of employment space through shops, leisure and community facilities and a primary school.
The hybrid application, which was steered by David Lock Associates for Hallam Land Management, also sought full planning permission for a regional distribution centre for supermarket chain Morrisons. It is the first application to be determined in line with the council's Bridgwater Challenge planning vision.
Hallam will also contribute £3.5 million towards a surge barrier to defend Bridgwater from flooding. The council's corporate director Doug Bamsey said: "It is exciting that a planning application of this size and benefit to Sedgemoor has been approved."