The board of supervisors voted unanimously Tuesday to approve the scaled-back development plan.
The revised project cuts more than 70% from the original proposal first introduced 15 years ago. It also removes a massive indoor waterpark.
After months of negotiations with resort owner Alterra, former opponents Sierra Watch and Keep Tahoe Blue endorsed the revised project.
The original proposal included more than 3,000 bedrooms and multi-story buildings. Over the years, thousands of local residents pushed back, raising concerns about traffic, growth and environmental impacts.
Under the new agreement, the number of approved bedrooms is reduced by 40% from the 2024 plan. Commercial space is also scaled down.