A £100m building project to regenerate the oldest part of Thamesmead is to go ahead.
The nine-year scheme to rebuild and modernise the Tavy Bridge area was given planning permission by Bexley Council, despite reservations.
Although councillors described the joint project between Gallions Housing Association and developer Wates as "exciting" and "an opportunity to be grabbed with both hands", they were unhappy about plans to build houses on a stretch of open space.
The project involves demolishing the homes, shops and public buildings in Tavy Bridge and Binsey Walk together with walkways and a podium deck and building new homes, shops and facilities fronting Southmere Lake.
Two tower blocks, Tilehurst Point and Blewbury House, will be refurbished.
But it was the plans to build on a crescent of land fronting the old Harrow Manorway which worried councillors.
Greenwich resident Winifred Gallagher, who lives opposite the land, described the crescent as an oasis and as a "sponge" for excess water and pollution.
The new homes will back onto the arches underneath the flyover, which are used for a variety of community projects, including the Archway project, a motorbike scheme for disaffected youngsters.
Councillors were worried future residents may object to noise from the arches and the flow of young people.
But they were told by officers without the 23 larger homes to be built there the whole scheme would not be viable.
Tony Cotter, Gallions' chief executive, said the project, which will be built in six phases over nine years, was the first part of a much wider regeneration project for Thamesmead.
But Councillor Alan Downing said: "I like the development but there must be some way to do it without building on the crescent."
He was the only member of the planning committee to vote against the project.
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