Water company United Utilities says it has no problem with sewage disposal on the proposed Gladman housing site off Audlem Road.
The shock decision will dismay many local councillors and objectors who claim the village sewer system is already seriously overloaded.
Despite widespread village concern at the state of local sewers the water company says it has no objection to the plans by Gladman Developments to build up to 120 new homes on the site near Little Heath.
In a long awaited response to a consultation request from Cheshire East Council, United Utilities executive Daniel Mc Dermott said: "I will have no objection to the proposal provided conditions are met."
United Utilities only asks that site surface water is drained using a totally separate system with only foul drainage connected to the public sewers.
Mr McDermott adds: "For the avoidance of doubt, no surface water flows shall communicate with the public sewerage system via direct or indirect means."
Concern at drainage of the Gladman site is one of the objections raised by Audlem Parish Council in its formal opposition to the scheme.
The council has raised major concerns at the long-term capabilities of the village sewerage infrastructure if plans get the go-ahead.
And many objectors claim the development will cause serious problems in the village centre which already suffers from road flooding and foul smells in the summer.
United Utilities is offering potential builders a fully supported mapping service of their mains water and sewerage assets in Audlem.
It warns that not all sewers are currently shown on statutory sewer records inherited from the former state-owned water authorities.
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