Plans to demolish an "eyesore" supermarket and build 54 homes in Radstock have been given the go-ahead.
Bath and North East Somerset councillors approved the proposals by Radstock Co-operative Society (Radco) which include replacing the store.
Councillor Robin Moss said: "You cannot underestimate how much Radco is a local community hub."
Plans involve two three-storey buildings, housing the replacement supermarket and a new public square.
One of the buildings would contain the new Radco store, along with the Co-operative's head office, with flats on the upper two floors.
The other building would have more apartments, giving a total of 28, with extra retail space downstairs.
Don Morris, from Radco, said: "We believe we can improve Radstock town by developing this purpose-built, smart, modern shopping facility that we can feel very proud of.
"By investing in new buildings we will be protecting employment vital to the economy of the town."
The Local Democracy Reporting Service (LDRS) reported that members also agreed to outline plans for 26 terraced houses at the rear of the site, although detailed proposals would need to be submitted and approved.