Extra homes will be built on the site of a former mine in Pontefract.
Development at the old Prince of Wales Colliery is continuing, with 250 houses already having been built on the land since 2014.
However, plans for industrial units to be built in the area have been abandoned because of a lack of interest from businesses.
Around 18 new homes will be built on the estate, off Skinner Lane , instead.
No objections were raised against the changes, and measures will be put in place to protect residents from noise pollution during the construction work .
Speaking at a Planning Committee meeting, Wakefield Council's principal planning officer, Ian Garratt said: “The land has been marketed well over the last two or three years but there’s been no takers at all. It seems it’s not an attractive site for businesses.
“If it remains retail and employment land the conclusion is it will remain empty. So the officer’s decision is to support the change of use.
"As a consequence of putting more housing on the site, there's a requirement for noise barriers to be put up to protect the people already living there."
Developers had also wanted to build small shops on the site, on land that was originally meant to be green space.
However, they backed down after opposition from residents, who will now get to decide what happens to it.
Mr Garratt said: "Residents were actually worried that late-opening shops could attract anti-social behaviour.
"There is a retail park in the local area and they didn't see a need for further retail outlets."
"There will be a consultation with residents on that and they will be asked, “How do you want the space to look?”
“Do you want it to be a play park for children or do you want it just as a plain grassed area?" "It will be a community led development."
The changes were unanimously approved by councillors.