Homes are to be built on the site of Llanelli's former Bryntirion hospital after the scheme was given the go-ahead by Carmarthenshire Council.
A total of 66 homes will be built at the site
The old workhouse at the site, which is connected with the Rebecca Riots, is set to be turned into 19 flats, and 47 units will be constructed.
The Rebecca Riots were a series of civil disturbances targeting tollgates in south Wales in the 19th Century.
Soldiers drafted in to quell the problem used the workhouse as a base.
The workhouse, which ran for 110 years before shutting in 1948, was then used as Bryntirion hospital.
Permission for the houses was only granted to the Westbury Homes firm on the condition that buildings of historic importance of character were preserved.
Developers had applied for removal of this condition last year but were refused.
Stuart Owen, development control officer at the council, said the conversion plans for the workhouse had been done "in a sympathetic fashion".
A new single access is due to be created on Swansea Road near to the existing hospital access.
The houses will be a range of terraced homes and two and three-storey semi-detached properties.
Councillor Clive Scourfield, executive board member for regeneration said: "I am sure the people of Llanelli will welcome the preservation of such an historic building within their town while developing much needed accommodation."
Riot leaders imprisoned
The Rebecca Rioters, who were men dressed as women, attacked tollgates across south west Wales.
Some of the protesters who were captured by soldiers stationed at the workhouse were brought back for questioning and imprisonment there.
One of the riots' leaders, David Davies, is believed to have been held at the workhouse, probably in a cell which was later used as a stationery cupboard.
Protesters adopted the name Rebecca because of the biblical verse: 'And they blessed Rebecca and said: Let thy seed possess the gates of those who hate thee.'