A 45-acre greenfield site will be marketed to house builders in the summer, after Communities Secretary Eric Pickles backed the development of 504 homes.
Developer Barrow Lands Company first proposed the scheme in Barrow, near Whalley, in June 2012 but met with strong opposition from local residents. The planning application was rejected by Ribble Valley Council.
Following a public inquiry, an inspector recommended that the plans be approved; this was upheld by the Communities Secretary this week.
The developer's planning adviser, Duncan Chadwick, partner at David Lock Associates, confirmed that the decision would now enter a formal judicial review period before the site would be put on the market in summer 2014. Outline plans for the scheme include 504 units in addition to associated development and potential for a new Barrow Railway Station.
Chadwick said: "It has been a very long journey to reach this point and our client is looking at options to bring the site forward for development as soon as possible. There should be some activity around June."
A residential agent suggested the sale value for the site could be between £400,000 and £500,000 per acre, giving a total value of between £18m and £22m.