Controversial plans for a flagship marina development have been given the go ahead.
Developer Oakdene says the transformation of the West Key at Newhaven will generate millions of pounds for the local economy.
The plans have met with criticism from people concerned about the scale of the development and the impact on traffic levels and neighbouring homes.
The proposals are for 319 apartments, 12 town houses, restaurant, shops, marina facilities, boat berths and riverside walkway.
The flats would be in 11 blocks between one and three storeys with more than 400 car parking spaces provided.
Lewes District Council approved the plans, which mark the second of a three phase development, at a meeting on Wednesday.
In a report to committee members, planners said despite bringing in radical changes, the development would bring substantial economic, environmental and social benefits to the area.
The application was agreed by Newhaven Town Council in January this year despite concerns from some the proposals were taking Newhaven too far from its fishing port roots.
Others were also worried the homes would be too expensive and the development elitist.
Oakdene bought the Newhaven site for £11.5 million in 2005, including West Quay, Railway Quay and a 300 berth marina.
The first phase, which created 106 apartments and five commercial units has just been finished.
Work will start later this year now the second step has been approved, and is due to be finished by the middle of 2009.
The company has longer term plans to submit another application to build a further 200 homes and create an extra 4,200 square metre commercial area at Railway Quay.
Once work is completed there will be around 600 homes based at the marina.
Oakdene chief executive Carl Turpin said: "We are delighted to have received detailed planning consent for the next phase of development.
"The first phase which has been well received by the local authorities and communities,and we look forward to developing the waterfront further, transforming the area into a vibrant and dynamic place to live."
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