An Bord Pleanála has given the green light to the South Kerry Greenway project, subject to eleven conditions.
The board has also approved a controversial Compulsory Purchase Order for the lands needed.
However, the board has ordered that two sections of the line not be given permission.
The €20 million greenway, being developed by Kerry County Council, is proposed to run for almost 32 kilometres from Renard to Glenbeigh, which will mostly follow the route of the abandoned railway line.
It comprises 222 land holdings affecting 197 landowners; the council applied for a Compulsory Purchase Order after failure to reach agreement with all landowners.
Over a year after a four-week oral hearing, An Bord Pleanála has granted permission for the development subject to 11 conditions; it says the greenway would be in accordance with European, national, regional and local planning and related policy.
It added the greenway would not have an unacceptable impact on the landscape or ecology and wouldn't serious injure the visual, residential amenities or property in the area.
Among the 11 conditions, An Bord Pleanála has ordered that sections of the Greenway from Renard Point to Caherciveen water treatment plant and at Cloghanelinaghan be omitted.
This is to ensure the protection, durability and longevity of the greenway in the interest of coastal protection and biodiversity.
Other conditions include the retention of the services of an ecologist, cattle grids at intersections with access roads and driveways and information panels to inform users that sections of the greenway cross through working farms.
The Compulsory Purchase Order was also granted but the board said it should be modified to include the omitted sections.
The board pointed to the need to provide a catalyst for the economic regeneration of the area
This is the first CPO for an amenity project in the country.
