Pendle Council has granted planning permission to the Yorkshire-based developer for 134 houses on a 6.19-acre site in Nelson, Lancashire.
Eshton intends to sell the Reedyford Mill site for a house builder to develop out and said interest is being shown. The consent is for 90 three-bed houses and 44 four-bed houses with gardens and parking.
Mike Dove, of Leeds-based property consultants Dove Haigh Phillips, marketing the development, said: "This development will regenerate an important part of an historic mill town. It is superbly located close to the M65 motorway and the Leeds-Liverpool canal and will provide much-needed family homes for the Nelson area.
"These homes are substantially larger than the traditional two-up, two-down houses in Nelson and will satisfy the pent-up demand for family homes with gardens and car parking spaces. They will add an exciting new dimension to the Nelson housing stock."
The is accessed from Scotland Road, close to Junction 13 of the M65, and Pendle Street, next to Morrison's supermarket.
The existing buildings on the site are let on a short-term tenancy and vacant possession will be given on completion of purchase.
The joint marketing agents are Trevor Dawson of Burnley.