A new Lidl has been given the go-ahead after a legal challenge from rival Tesco.
The budget grocery chain was given planning permission for a new store on the edge of Downham Market last May.
But the decision was overturned after a legal challenge from Tesco, which said the new store's impact on Downham town centre had not been properly considered.
Now West Norfolk council's planning committee has agreed Lidl can build a slightly smaller store on Bexwell Road, near the A10 roundabout, after a report said it would not have a "significant adverse impact" on the centre.
Fourteen members voted in favour, with one abstention, after a debate lasting more than an hour.
Josie Ratcliffe, councillor for the East Downham Ward which includes Bexwell Road, said it had 1,000 homes and no supermarket.
She said residents would drive to other towns to shop because of the lack of parking in Downham.
Kate Bleloch, from Lidl, said the new store would provide more choice for residents and 40 new jobs for Downham.
Heacham councillor Terry Parrish said a small supermarket in the coastal village had closed after a Lidl opened on the A149 bypass.
He added: "Out-of-town developments are an '80s and '90s failure and they should be frowned upon now, because out-of-town developments detract from the town."
But the report to councillors said there was "overwhelming support from the local community" for the new store, with 455 representations of support and 28 objections.
It added: "It is clear that the residents of Downham Market are eager for the proposed foodstore to come forward on the site."
Councillors heard the new store would bring in a community infrastructure levy payment of £269,000, of which £40,000 would go to Downham Town Council.
But Lidl is no longer offering £50,000 towards town centre improvements.
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