The site would feature a marina, bars and holiday apartments
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Developers hope to have a world-class sailing resort open at Loch Tay by 2012 after being granted planning permission by Perth and Kinross Council.
The Croft Na Caber site will feature a marina, bars, spa, more than 50 holiday apartments and a watersports centre.
Strathtay Developments has said that 42 jobs will be created at the facility.
However, about 80 locals lodged objections about the proposals, many concerned safety on a narrow road which the site near Kenmore straddles.
Eric Strickland from Strathtay Developments said he was "absolutely delighted" that their plans had been approved.
"It's been a long process - we've been working on this process for the last three-and-a-half years," he said.
"The vision is to really create a 21st century sailing resort which is going to cater for families and members of the public and tourists that will be able to experience sailing in a variety of different craft without necessarily having to get into a damp wetsuit.
"There is not a lot of opportunities for young folk [in the area] and we're going to be creating 42 jobs in the running of this resort, not to mention the jobs created in the construction of it."
However, Bill Oppenheim, chairman of the Loch Tay Association, told the BBC Scotland news website that the area was falling victim to a "stampede to develop."
He was angry that the council rejected their concerns and gave approval to the plans.
"It was quoted to us that Highland Perthshire is identified as one of six hotspots for development and basically that just ran roughshod over any concerns that anybody had," he said.
"We're all for tourist development but there were in our view serious problems with this proposal and they just ignored them.
"The serious problems had inspired 75 people to object to the plan yet they just didn't care.
"A stampede sweeps everything aside that's in its path - good, bad, indifferent and in our view this was a pretty clear case of the proposal being accepted because of considerations other than those to do with the specific site."
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