Dubbo Regional Council has given the green light for a child care facility to be built on Hennessy Drive.
The facility is expected to look after up to 100 children at a time and employ 13 staff.
Macquarie View residents were against the idea due to the increase in traffic it would cause. They also said it wasn't necessary and didn't fit in with the aesthetics of the neighbourhood.
However, Dubbo Regional councillors said the development was compliant and therefore they had to approve it.
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Speaking before the approval was given, developer Alan Moynihan said he had sought legal advice and knew what his rights were if the development wasn't passed.
"I fully understand it has the ability to upset some neighbours. They 100 per cent have the right to be upset," he said.
"What they don't have the right to do is trample over my rights and my legal rights, which they're trying to do now."
Councillor Greg Mohr said if the compliant development application wasn't approved, it could cost the ratepayers $100,000 fighting the decision at the Land and Environment Court.
"It's got no legs to stand up if we object to this," Cr Mohr said.
Mr Moynihan plans to bring his family to Dubbo to run the centre. He said there was a need for child care in the area.
"That's the very reason I chose the area that I chose. To think there's never going to be another child care in that area is delusional. I'm only going to cater for 100 [children] there needs to be more than my centre there," he said.
Cr Mohr agreed. He said it was hard to get children into child care places throughout Dubbo and council shouldn't be knocking back people who want to relocate to either Dubbo or Wellington.
Councillor Stephen Lawrence said he wanted to assure people the concerns they raised had received careful attention from councillors.
The councillors unanimously voted in favour of the child care development.