The town council in Killarney has voted unanimously to amend the town development plan and rezone more than 20 acres owned by the Gleneagle Hotel Group for "tourism and associated facilities".
The lands, which run for almost 2km from the town centre along the river Flesk, had been zoned a Secondary Special Amenity Area under the Kerry County Development Plan. They became "unformulated" when they were included within the urban boundaries in recent years.
The town centre proposal in March last year, which would have opened the door for high-density housing and a mix of uses, was staunchly backed by a majority of councillors but blocked by town management.
This second attempt was submitted last June along the lines suggested as a compromise measure by management. It has been out for public consultation.
The rezoning will provide for mixed development, including hotels, houses, museums, tourism, leisure and retail.