An appeal by Donegal County Council to stop the construction of a holiday village in Ballintra has been overturned by An Bord Pleanala.
Ten buildings, eight of which are already in place, have been earmarked for the development at Lower Main Street.
The houses in the holiday village are to be used for commercial, short-term lets only.
Mayor of Donegal Town, and local election candidate, Pauric Kennedy, says that despite the council’s concerns, the development will benefit tourism in the area.