A MULTI-storey development in Kangaroo Flat has been approved by City of Greater Bendigo councillors.
The High Street subdivision includes 22 one and two bedroom dwellings.
It will feature two two-storey buildings and one three-storey building.
Council officers said development would help provide new housing in terms of accessibility to employment opportunities, leisure and shopping facilities and public transport.
"It will provide a type of housing which is in short supply in Bendigo, while preserving neighbourhood character," the report states.
Most councillors praised the development, saying it was the right direction for Bendigo.
Councillors Elise Chapman and Helen Leach spoke against the development on the grounds of traffic and parking concerns.
There were seven objections to the proposal. There was a reduction in the standard car parking requirement to allow the development to go ahead.