The previous Labour Government's plans to address the housing shortage meant Staffordshire Moorlands District Council had to find land for 1,119 homes in Leek, 1,035 in Cheadle, 918 in Biddulph and 802 in rural areas.
The sites subsequently identified for housing sparked outrage with several action groups set up.
But Eric Pickles, communities secretary in the new Conservative and Lib-Dem coalition Government, last week scrapped the targets.
Councils will instead be offered financial incentives to build more houses.
Mr Pickles said: "Communities will no longer have to endure the previous Government's failed Soviet tractor-style, top-down planning targets – they were a terrible, expensive, time-consuming way to impose house building and worst of all threatened the destruction of the green belt."
Leader Sybil Ralphs, pictured below, raised concerns on numerous occasions that the "dictatorial" housing requirements would put untold strain on the towns' and villages' road networks.
She admitted to being "very relieved" after the targets were scrapped.
She said: "I'm delighted. It puts the responsibility for housing back where it should be – and that is in the community.
"It will give us the opportunity to consult with people on what housing they want and we will not be dictated to, thank goodness, as far as targets."
SMDC said it was too soon to comment on how the news will affect its housing policy. A working group will meet this week to discuss the terms and scale of a likely policy review.
That could mean radically-altered plans are sent out to a public consultation.
The sites previously chosen in Leek included 100 houses at Churnet Works, off Macclesfield Road, and 20 at the Belle Vue factory site.
Other potential developments included Bode Business Park, Staffordshire County Council's depot at Ladderedge, Churnet View Middle School playing fields and land at Fowlchurch tip, Worthingtons factory and Hillside Drive.
Only recently SMDC reduced a target to build new properties in Cheadle before 2026 from 1,500 to 1,300 with the shortfall being spread across the Moorlands.
This led to fears rural areas would be swamped by new developments.
Councillor Linda Malyon had warned that up to 70 new houses would be too much for some communities to sustain.
She said: "I'm very relieved. Many villages have no schools and sewage systems would not be able to cope."
County, district and town councillor Steve Povey warned builders would have their eyes on all the areas identified. He said: "There are two sides to this news. We might have to fight developers more in the future, but it will mean villagers are not swamped with houses they do not want."