Pembrokeshire councillors unanimously backed the plans for the Martello Quays development, which will include hundreds of new homes, a multi screen cinema, hotel, pub, restaurants, gallery and possibly a casino.

The development is named after the nearby Martello Tower built to defend the town in Napoleonic times.

Wales-based developers Conygar Investment Company and Vinci Project Development have contracted Norwest Construction to build the marina which will be located on 16.8 hectares of land, most of which is an inter-tidal bay of mud flats, opposite Neyland on the Cleddau Estuary between Hobbs Point and the ferry terminal to Ireland.

The development will create a marina with pontoons for up to 260 berths along with 146 houses and 304 apartments.

The initial structural phases are scheduled to be completed by the end of 2009 with houses being built in phases until 2013.

It is expected to create hundreds of new jobs and generate over £10m annually for the town's economy.

However conservationists have raised fears it may damage wildlife habitats but developers have said they would protect the area.