The developer must pay a fee of over €250,000 to the local authority though.
98 new homes are to built in Mullingar.
Planning permission has been granted for the development in the Rathgowan area, which also includes a childcare facility and cycle and pedestrian pathway along the boundary of the site, and will form part of a larger, two-phase development in the area.
The project is being undertaken by Glenveagh Homes Limited, which is already building a number of other developments in the midlands.
Local Fianna Fáil councillors Ken Glynn and Aoife Davitt had made representations to the local authority in relation to the application.
Approval was granted on condition Glenveagh pays €256,922 to Westmeath County Council to contribute to public infrastructure in the area.