An industrial estate and milk delivery depot will be demolished to make way for the latest Nine Elms development.
Sleaford Industrial Estate and Dairy Crest Milk Distribution, in Sleaford Street, Battersea, will be transformed into tower blocks containing 294 homes.
A planning committee at Wandsworth Council voted unanimously for the development, with £8m in community infrastructure payments generated for the council.
The development is the latest site located within the Nine Elms regeneration project to gain planning approval.
Owners, Sleaford Street Management Company and Dairy Crest, want to create new homes including 16 per cent affordable units.
During the meeting Labour councillors raised concerns over the amount of affordable housing and the displacement of industrial businesses.
Opposition councillor, Councillor Tony Belton, said: "Every single paper I have read since Christmas Day has emphasised how retail shopping is disappearing and how everybody is moving to online faster and faster.
"We are planning far too much retail in Nine Elms.
"Are you considering the amount of retail we need as we go along in Nine Elms?"
Planning officers said the amount of retail originally planned has been cut, making way for more housing in the Nine Elms site.
Councillor Dr Billi Randall said: "These little pockets of industrial employment are disappearing. Is there anyone who can put something more industrial here?"
Committee chairman, Councillor Nick Cuff, assured the meeting thousands of jobs for skilled and non-skilled workers are being created through the development.
The Battersea Society have also objected to the high buildings and the focus on residential buildings rather than existing businesses.