A new housing estate with more than 100 homes could be built on the edge of Morley.
Barratt Homes has been given the go-ahead to develop greenfield land off Scott Lane.
The company plans to build up to 115 houses, as well as a two-storey office.
The undeveloped land had been earmarked for employment use under the Leeds Unitary Development Plan.
But Leeds City Council granted planning permission for residential use last week.
A Barratt Homes spokesman said: “Following 12 years marketing the site for employment development with no serious interest, this approval will allow this sustainable site to be developed for much needed housing.
“Whilst we appreciate that traffic is a sensitive issue along Bruntcliffe Road, a housing development will result in less heavy traffic movements when compared to the site being built and used for a variety of employment uses.”
Coun Neil Dawson, for Morley South, said he was “disappointed” with the decision. He said: “I actually spoke at the planning meeting against the application on the basis that this is an area that has been dedicated for employment use and therefore we should stay with what was in the plan and let it remain as employment development not housing.”
Coun Robert Finnigan, for Morley North, added: “We are opposing this application because of the overwhelming pressure it will put on the already congested Bruntcliffe Road.” He said new homes would also put a strain on school places and health centres.
A Barratt Homes spokesman said contributions would be made to improve infrastructure and schools in the area.