Macclesfield Borough Council are set to lift a ban on work at Egerton Estates' development in Brook Street.
"They have now submitted satisfactory information and the enforcement notice will be withdrawn," said planning officer Hugh Smith.
Egerton Estates were told to stop because there were fears they were affecting water levels around Sanctuary Moor.
Residents in Woodvale Road said they had never seen the water levels so high and the Environment Agency was called in to investigate.
The borough council gave Egerton Estates 30 days to prove the 24-house scheme would not cause floods in the town.
Yesterday, a spokesman for the award-winning developers said they had done what they were told.
"We are delighted and work will carry on once we have notice from Macclesfield," he said.
However, Egerton Estates' plans for more houses on the site were recently refused.
There were objections from the Georgian Group who were concerned about the loss of buildings facing Brook Street.
It was not clear if the Alderley Edge-based developers will resubmit the plans yesterday, but Mr Smith said they would now have to stick to their word.
"There are a couple of simple issues that still need sorting out," he said.
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