Planning permission has been granted by Wyre Council for 130 homes in Garstang, Lancashire, to be built by Barratt Manchester on land off Kepple Lane.
The new development will offer a range of three and four bedroom houses and includes the creation of a wildlife-friendly wetland meadow.
The site is next to the River Wyre and open countryside.
Barratt Manchester will pay Wyre Council around £4,600 per home, a total of £600,000, to pay for community infrastructure, including road improvements and education provision.
Michaela Lancaster, sales director at Barratt Manchester, said that in addition to the investment in the local area, buyers who move into the new homes will also spend their wages locally, which translates into a significant boost for local retailers.
Lancaster added: “We are thrilled to have been given permission to construct a community in this popular location. Our aim is to provide stylish and sustainable homes for a wide range of buyers with varied lifestyles, and work is due to start soon.”