In May, the Journal reported that Kep Developments had erected a sign at 59 Kinnoull Grove advertising 18 blocks for sale. The land, which was the former site of a CSIRO research laboratory, had a permit issued for the development of a new subdivision with 22 lots and 18 dwellings.

It did not allow for the sale of individual lots as vacant blocks.

After Monash Council ordered the developer to remove the sign in May, Kep Developments applied for a permit to divide the land into 19 lots for individual sale.

The developer no longer intends to sell house and land packages. At a meeting last week, the council granted the permit in what has been hailed a "win for the local community".

Resident Sandra Feleppa said the community, which alerted the council to the illegal signage, was in favour of the new plan as it was in keeping with the areas's character.

"It shows that by taking an active interest in your neighbourhood, any group can force positive changes."