Barratt has been granted planning permission to build 70 homes on land at the former Pontin's headquarters in Eccleston, near Chorley.
The homes will be a mix from two- to six-bedroom and 21 will be classed as affordable housing.
The application was approved unanimously by Chorley Borough Council's planning department and work is expected to commence in 2011.
Cllr Peter Malpas, head of planning at Chorley Council, said: "It is great news for Eccleston and Chorley as a whole. The site was granted outline consent earlier this year and I'm pleased that Barratt has been given approval for a detailed scheme which includes a good selection of affordable homes for local people to get on the housing ladder."
The project will include the clean-up of a brownfield site and financial contributions to community facilities, open space and additional off-site housing in Eccleston.