The Inspector recommended that planning permission should be granted subject to conditions.
Secretary of State for Communities and Local Government, Eric Pickles has given the go ahead for the Rushden Lakes development to start.
In October 2012, East Northamptonshire Councillors voted unanimously to grant planning permission for the old Skew Bridge Country Club and dry ski slope on the edge of Rushden to be developed into retail units, restaurants and a lakeside visitor centre, along with a hotel, leisure club and boat house.
Under planning rules, the application was referred to the Secretary of State who determined that the decision should be reviewed at a public inquiry which took place in June 2013.
The official confirmation states "The Inspector recommended that planning permission should be granted subject to conditions. For the reasons given [in the report], the Secretary of State agrees with the Inspectors recommendations."
Cllr Steven North, Leader of East Northamptonshire Council, says:
"This is great news for East Northamptonshire as it will provide local people with a better retail offer on their doorstep as well as new jobs and a regenerated site that has become a blot on the landscape.
"The leisure opportunities will add to the Nene Valley project that encourages people to make the most of the river and help to give better access through a footbridge and cycleway across the A45.
"Rushden Lakes will complement rather than compete with the High Street, and many local retailers are keen to see this happen as it will bring more people to Rushden than ever before."