They want to transform the 71 Lily Street house into a clinic for occupational therapy, speech pathology, social work and mental health, albeit with different planning conditions.

The centre would help children and teenagers with things like development delay, autism spectrum disorder, anxiety, trauma and intellectual disabilities.

Parents might also be able to attend for help with postnatal depression, grief and loss, mood disorders and post-traumatic stress disorder.

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City of Greater Bendigo councillors signed off on the plans last July despite nine objections over the specific location of the centre.

Several residents then took the council and developers to the Victorian Civil and Administrative Tribunal over a number of traffic and amenity concerns they wanted addressed.

VCAT says the centre would bring a net community benefit with appropriate conditions, and has modified some of what the council previously specified to improve amenity for neighbours, along with clarifications about the nature of the facility.

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Deputy tribunal president Teresa Bisucci has rejected concerns that the medical centre would change the nature of the road it sits on.

"I find that Lily Street ... is not a quiet residential street. During my site inspection I observed many cars travelling along Lily Street in both directions," she said.

Ms Bisucci said the road's design reinforced her view that it was intended to serve as a transport route or connection road.

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