Brighton Marina will be transformed into a glittering seafront resort to rival Barcelona according to developers behind a £100 million plan given the go-ahead last night.
Parkridge Developments wants to build leisure outlets, including bars, restaurants and shops.
The company also envisages futuristic renewable energy sources at the harbour, improving transport links to the city centre and building hundreds of homes.
Last night Brighton and Hove City Council ignored objections from some marina residents and gave Parkridge's masterplan the stamp of approval.
The decision by the environment committee gives the company the green light to develop a more detailed plan of its proposals before applying for planning permission.
The move has angered residents who claim the development will wreck the character of the area.
Hundreds signed a petition calling for the scheme to be scrapped, which was presented to the committee by Tory councillor Brian Hunt.
Deputy chairman of Brighton Marina Residents' Association Peter Martin said: "The development could be excessive and will spoil the village square.
"Our objections are being ignored and this leaves a sour taste in the mouth."
But Philip O'Callaghan, managing director at Parkridge, said the development would vastly improve the harbour area.
The company has already spent millions developing the marina, with the new Waterfront building, complete with designer shops, restaurants and a hotel, forming its centrepiece.
Mr O'Callaghan said: "We have already invested £25 million in the marina, including the new Waterfront building, because we believe we can transform it into an exhilarating location of international quality and renown.
"We are delighted we are one step closer to turning our goal of creating a landmark development through stunning and innovative architecture, into a reality."
A development brief covers the western and more commercial half of the harbour and seeks to reconnect the marina to the city and seafront.
But not all councillors have welcomed the scheme.
Tory councillor Pat Drake said she was "deeply unhappy" about the proposals.
The marina development was the idea of garage proprietor Henry Cohen in the Sixties.
It was originally planned between the piers but was later moved to Black Rock.
After two town polls and Acts of Parliament, the marina was approved and the harbour for 2,000 yachts was completed in the late Seventies.
Onshore development has been slow, due to costs. Despite boasting a supermarket, shops, restaurants, cinemas, a bowl, a casino, a sports centre and hundreds of houses, the council has acknowledged the site is not reaching its potential.
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