Nearly 170 homes could be built in a buffer zone between the residential edge of Pinchbeck and its industrial area.
Larkfleet Homes want to build on land off Wardentree Lane and council officers have recommended planning approval subject to the company agreeing to provide 56 affordable homes and £200,000 “towards local education provision”.
South Holland’s planning committee is due to deliver its verdict tonight (Wednesday).
Ward member Coun Sally Slade has objected, saying the area was left as a “buffer” between homes and businesses and it will lead to a vast increase in traffic on nearby roads.
But council officers point to the lack of a five-year deliverable supply of homes.