Highland Council planners have given the go ahead for 100 new homes to be built in the small village of Croy.
Residents and local councillors had raised fears over the population of the community increasing, putting additional pressures on services.
Concerns were voiced over the village primary school and how it would cope with an influx of pupils.
Villagers are also worried about flooding to the Croy Burn as a result of the new development potentially causing more environmental damage to Loch Flemington.
Anna Almi-Merrouni, 55, a piano teacher, said: “My concerns are the mass amount of houses being built here because it is a very small village and the school will not have the capacity.
“I think also of the balance of nature – it is in the middle of the countryside, not a housing development, and they have already built Tornagrain.”
Bruce Strachan, a member of the Croy and Culloden Moor Community Council, said he had more questions than answers.
He said: “Our concerns were basically with the practical designs, we are not against the houses in principle but there are lots of issues.
“Flooding, drainage, Croy Burn, Loch Flemington and major concerns about the road at the top – it is a fast stretch of road.”
He added: “I would say there is a suspicion that these issues have not been quite nailed.”
The development was given the green light on the basis that a committee is set up with planning officers, community councillor and the developers on board.
This is to make sure all planning conditions are met.
Council leader Margaret Davidson said: “There was nothing wrong with the idea of houses being built there, it is a good site but there are some real site issues and local people need to be working them through.”
Developer Scotia Homes said: “We are delighted to have secured the support of the Area Planning Committee for the development at Highwood Croy.
“We look forward to continuing these close working relations in order to deliver this exciting development.”
The development will include 25 affordable homes, a cafe and a retail unit.