At a meeting last night St Peter's parishioners voted in favour of the plans to build 65 affordable homes on green space in the village.
It was a closely contested issue, with 84 votes for the housing plans to go ahead and 74 votes against.
However the plans put forward by the Constable of St Peter will now not be debated by the States on March 26th. Instead the States will consider the development after the 2021 Island Plan has been drawn up.
Last year plans to build the affordable family homes were rejected by the former Planning Minister, Deputy Steve Luce, as it would involve building on green zone agricultural land,which is against the Island Plan.
Constable Richard Vibert says he will withdraw his proposition, and take it forward to form part of the 2021 Island Plan.