Leitrim County Council has given planning permission for part of the old Kiltoghert Creamery in Carrick-on-Shannon to be turned into a museum and visitor centre.
Despite a strong campaign from a local community group, the main building was demolished in 2013, having been built in 1901.
The site is owned by Aurivo, which has an agricultural co-op at the location, while the old creamery workshop is still standing at the site.
Friends of Kiltoghert intends turning it into a museum and visitor centre, showing artifacts from the old creamery.
The council has now given planning permission for the change the use of the existing ground-floor workshop to facilitate the tourist attraction.
Padraig Gilbride, the chairman of the Friends of Kiltoghert, is welcoming the news and believes the museum could replicate the success of other tourist attractions in the region.