Mayor Stuart Crosby, councillor Gail McIntosh and councillor Matt Crowley voted against another access-way.
Westridge Drive residents' spokesperson Linton Heatly told the Bay of Plenty Times "it is the best possible outcome we could possibly have".
The groundwork that had gone into it "has been tiring and fatiguing and it's taken a lot of my own personal time but it has been very worthwhile".
"This has united Westridge residents and we are so strong as a community because of this and more particularly so because of the outcome."
Fellow resident Doug Hendry said he was happy with the decision.
"Councillors listened to what ratepayers thought. We didn't want to block development in Tauranga, we just didn't want it to destroy our lifestyle. It's no use complaining if you don't speak up before a decision is made, so speak up and be heard."
Councillor Bev Edlin said she was pleased with the outcome which also incorporated rural zoning so the "people can enjoy the comfort of what they bought into".
"At the same time we were able to create more housing ... it's going to be a great subdivision."
Mayor Stuart Crosby said he was not in favour of providing another access-way because it could create transport and civil emergency problems.
Smiths Farm would be the fifth SHA in Tauranga to be put forward, he said, with plans afoot to also submit a proposal to the Government about the camping ground at Girven Rd.
Up to 240 homes could be built on Smiths Farm and a report from Council said a significant number of inquiries had been made by developers wishing to acquire land. Next year, the council would decide whether to sell, partner or undertake the development itself.
Upgrading Westridge Drive to provide access was expected to cost $500,000 according to a staff report.