It represents one of five stages of the Edward River Retirement Village, with construction to start later this year.
A revised tender for stage one was adopted by council at an extraordinary meeting of Edward River Council on Tuesday.
The revisions reduce the scope of options to three styles of two bedroom units in stage one.
The other four design options originally proposed will be available in other stages of development.
The winning tender for the builder will be announced soon.
Stage five - which will be the completion of the 32-home village - is planned for 2028/29.
This could be brought forward based on demand.
The village will be located between Harfleur and Poictiers St in Deniliquin.
The first six units will all be two bedrooms, with stage one also including associated civil infrastructure, landscaping and service connections.
“The development has been at the centre of many lengthy discussions, and great consideration has been given to the budget and risks associated with the development,” Mayor Peta Betts said.
“After further discussions and several reports to council, and council's Audit Risk and Improvement Committee (ARIC), we are thrilled to announce councillors have voted to proceed with the project.”
Council has allocated $520,000 from its Infrastructure Reserve to the Edward River Village development, as well as $1 million from the Murray Darling Basin Diversification Fund to cover stage one.
Council general manager Phil Stone said council is actively trying to source other grant funding to assist with the continued delivery of the development in the other four stages.
An application has already been made that would cover stage two of development.
“The Edward River Village development is sustainable and has the opportunity to provide an essential service to the community for retirement,” Mr Stone said.
“The retirement living site is in line with delivering several key items from council’s strategic plan.
“It will be a great place to live, will provide community access to essential services and allow our community to be safe, happy and healthy - both physically and mentally.”