Campaigners celebrated the decision to make North Hinksey and Cumnor a priority for affordable housing after a £2m windfall was given by developers.
The cash had been given to Vale of White Horse after the developers of the West Way shopping centre To compensate the schemes lack of affordable housing.
During the planning committee where permission for the development was granted residents were told the £2m could go on any affordable housing in the district.
At a full council meeting last night it was agreed that North Hinksey and Cumnor would be made a priority to receive some of the funds for affordable housing if suitable sites could be allocated.
Although councillors Debby Hallett and Emily Smith were told the money couldn't be specifically ring fenced for Botley they said they were pleased this compromise was made.
Mrs Smith said: "I am really pleased we have been able to reach this agreement.
"We have a time limit on this funding so I'm hoping we can work with North Hinksey parish council to find some suitable affordable housing sites.
"With parish councillors already looking at small sites for development in their neighbourhood plan I think this will be a great opportunity to find affordable housing in the area."
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