HB Community Solutions and Bolsterstone Chesterfield LLP are to build 37 apartments in Blackburn town centre after getting planning permission.
Manchester-based HOW Planning secured approval on their behalf for the two acre development in Moorgate Street.
The site previously housed Moorgate Mill and has been cleared for development. The scheme comprises two buildings: one with eight apartments and another with 12, both approved in full detail. A further 17 dwellings were granted outline consent with all matters reserved except for means of access.
Jon Suckley, associate at HOW Planning, said: "The vision for this scheme is to deliver a sustainable development on what is a vacant and under-used brownfield site. Approval of the application ensures our clients can help realise its full potential, by bringing it back into beneficial use through new homes and investment to the area."
The site is bounded by the Leeds-Liverpool Canal, which will be landscaped as part of the new development.