Plans to regenerate New Addington's Central Parade are to go ahead after the High Court refused a judicial review into a failed application to designate part of the road as a village green.
A supermarket and a leisure centre will be built at the western end of the road, work which would have been blocked had the area been afforded protected status.
Councillors in March rejected a resident's application - first lodged in 2011 - for a paved area, including three car parks, to be registered as a village green.
Michael Fuller, 74, of Overbury Crescent, appealed the decision, but High Court judges this week turned down a request for a judicial review.
Councillor Jason Perry, cabinet member for planning, regeneration and transport, said: "This is the right decision for the people of New Addington, who want to see their town revitalised.
Central Parade
"We are disappointed that this application has delayed the work to deliver a new leisure centre, improvements to the community facilities and a new supermarket for the area, but we’re pleased that the courts back our decision and we can now move forward with the community to bring much-needed regeneration and jobs to New Addington."
Croydon Council will now appoint a design team to work with the community to draft proposed upgrades for Central Parade.
Among the improvements planned are better access to shops, resurfaced footpaths and roads, and parking.
The area has already seen some improvement work, including the installation of a performance stage, a play area and new seating at the market square.
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