The City of Ballarat last night approved a planning application for a seven-story apartment complex at 6 Lyons Street North.
Councillors unanimously approved the project despite concerns from objectors around height and heritage impact.
Ballarat Mayor Cr Daniel Moloney says rejecting the proposal would have sent the wrong message.
"We ultimately lose the right to complain about high traffic levels and people not coming in from new growth suburbs."
"We lose the right to complain about sustainability, we lose the right to complain about a lack of housing diversity if we consistently reject these type of applications, " Cr Moloney said.
Image: City of Ballarat