A planned Muslim-led city in the heart of Texas is one step closer to becoming a reality after a judge said the state must comply with developers. 

The East Plano Islamic Community (EPIC) mosque is hoping to create a new neighborhood for its followers just outside of Dallas, close to the town of Josephine. 

Initially called EPIC City, the project was rebranded as The Meadow last year. The master-planned city will include 1,000 homes, a mosque, green spaces and schools.

Hundreds of locals have spoken out against the idea, along with state legislators, including Governor Greg Abbott and Attorney General Ken Paxton, who claim project leaders plan to impose Sharia law.

But developers scored a win on Tuesday when a Travis County Judge ruled that the state agency Texas Workforce Commission must comply with the terms of an agreement it reached with the developer, Community Capital Partners. 

The Texas Workforce Commission refused to proceed with the next steps for The Meadow project, saying it is under investigation for potential fair housing violations. 

Community Capital Partners responded by filing a lawsuit against the agency for failing 'to acknowledge, evaluate, or advance the fair housing policies' it submitted.

The Travis County judge sided with developers this week and denied the state's request to dismiss the case the following day, paving the way for progress. 

'This ruling confirms what we have maintained from the beginning that Community Capital Partners has been willing, ready, and committed to following Texas law at every step,' the company's president, Imran Chaudhary, said in a statement. 

'We have done nothing wrong, and this decision reflects that.'  

The Texas Workforce Commission said the court's ruling was 'flawed and overlooks substantial evidence' that shows the developers are violating the Fair Housing Act.

'This development remains under active investigation with our federal partners at the U.S. Department of Housing and Urban Development (HUD). We are taking immediate steps to appeal this decision,' the agency told The Dallas Morning News. 

Governor Abbott posted on X about the decision, writing: 'This erroneous court ruling has already been appealed and halted.