The Royal Borough of Windsor and Maidenhead has approved four planning applications from Sorbon Estates and Shanly Homes for a major redevelopment of the town centre.
The scheme is known as Chapel Arches and will bring more than 200 new apartments, retail, office and leisure unites built around the York Stream.
A special meeting of the development control panel approved the four planning applications on Thursday night.
Although a report to the DC panel said some of the proposed buildings would be taller than planned and that the Colonnade would have to be demolished, the advantages “outweigh the harm on the townscape and heritage assets”.
The panel then imposed more than 60 conditions to mitigate environmental impacts, increase community safety and ensure sustainable design and construction.
As well as redeveloping the waterway, it will provide underground parking, a new footbridge and a replacement bridge to the Hines Meadow car park.
Development control panel chairman Derek Wilson said: “Approval for this redevelopment is a red letter day for Maidenhead.
“It is another significant signal that we are committed to taking forward the rejuvenation of the town centre so that residents and visitors can enjoy the benefits of various and interlinking uses, all designed to bring vitality and vibrancy to this important part of our town.
“It’s another step towards making the dream a reality.”