A MAJOR Lennox Head residential development has been given the go ahead, after a development application for the 168-lot Henderson Farm subdivision was approved by Ballina Shire Council yesterday.

The $14-million residential development on The Coast Road, spanning 92.5 hectares, will be known as The Outlook.

Key issues surrounding the approval included the increased amount of traffic on the surrounding road network, developer contribution and stormwater runoff.

The 2012 Henderson Farm traffic study estimated an additional 320 vehicles per day would travel south via Montwood Drive or Henderson Lane as a result of the development.

The additional traffic on Montwood Drive would add to the estimated 571 extra vehicles from the nearby Pacific Pines development, resulting in the road being "environmentally overloaded" by 18%.

However, these traffic concerns would be resolved once the Hutley Drive upgrades were completed.

The approval was given with a deferred commencement of three years.