Planning officers had originally recommended that Bath and North East Somerset Council approve building the housing scheme in Keynsham.
But the council rejected it despite the land being allocated in the local plan for housing following strong opposition from local people about access to the site.
Now the scheme has been approved by a planning inspector following a public inquiry in June.
One hundred of the homes will be affordable housing – 76 rented and 24 shared equity.
Across the 30-acre development, there will be a mix of homes of all sizes – from one-bedroom units to six-bedroomed houses.
Taylor Wimpey will also build two new shops, a playing field with changing rooms and an extension to the town’s Castle Primary School.