Lightwater Valley has had planning permission approved for a holiday village comprising over 100 wooden homes.
Harrogate Borough Council unanimously approved the plans, which will see the construction of the homes and transformation of the theme park into a short-stay resort.
It is widely expected to ensure the survival of the North Yorkshire theme park, whose manager yesterday stated that it could not sustain a further two years of current visitor numbers.
As previously reported, the village will utilise the wooded area of the park which lies to the east of the light railway line, including the water feature previously occupied by The Wave flat ride.
In 2008, the park had an application for a holiday village comprising over 300 wooden homes and caravans refused on the grounds of sustainability.
However on the current successful proposal, the park worked closely with the local authorities in advance of submitting a formal planning application.
Construction is scheduled to commence later this year on the project – to be operated as Lightwater Valley Resorts – with the first homes available from 2015.