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Opponents of plans for houses on former tennis courts say they will look at taking legal action.
Medway Council refused permission to build the homes on the former Avenue Tennis site between Second Avenue and Glebe Road in Gillingham on four occasions.
But in a surprise move last week, a government planning inspector overturned its decision.
The long-running row saw residents take to the streets in protest over what they thought would amount to an overcrowded development which would result in a loss of privacy.
Following the most recently-refused applications for seven and then six homes – which included access from Second Avenue – the developers decided to appeal.
The Jarvis family, who own the land and the Avenue Tennis club in Featherby Road, are behind the plans; two previous appeals were dismissed.
Oliver Fish, chairman of the Upper Gillingham Residents' Association, said: "We are of course devastated by the news that the plans have gone ahead.
"The planning committee unanimously rejected the application with one councillor calling it a disgrace, so how on earth it has been turned around accepting the appeal from the developer, I'll never know.
"We are now looking at legal options available to us. The fight is not quite over."
Government-appointed planning inspector Dan Szymanski returned his decision notice last Wednesday having heard evidence during a hearing at the council's Gun Wharf HQ in Chatham last month.
It was decided that while there "would be some perceptible change for some neighbouring occupiers", the orientation of the new homes and distance from other properties meant they would not be negatively impacted.
He concluded neighbouring properties would not be harmed by loss of daylight or outlook.
The report added: "The appeal site is currently a private space with no public access. There is no technical evidence the developments would be so detrimental to result in harm to wellbeing."
Watling ward representative, Cllr Chrissy Stamp (Lab), called the decision "unbelievable", adding: “I am absolutely appalled this has been allowed.
“I put myself in the shoes of the residents who are now going to suffer with this dreadful planning application being approved and really do feel for how their lives are going to be affected by this."
Fellow ward councillor Wendy Purdy (Con) said: "I'm very disappointed. I've fought for quite some time to stop it.
"Not that I am against housing and development, but I just think that's the most inappropriate place."
Jarvis Residential declined to comment.