Work has begun to build 14 houses on the site of the former Caldervale Mill in Pendle, Lancashire.
Harbur Construction, Manchester, is building the £1.5m housing development in Lower Clough Street, Barrowford, on behalf of Rainbow Homes.
Caldervale Mill was demolished to make way for a previous scheme which then stalled. Rainbow Homes acquired the site with planning permission and recommenced building.
The architect is Hurd Rolland Partnership.
Phil Newton, business development manager at Harbur Construction, said: "This scheme will provide some much needed family homes for this rural Pendle village and will transform this former brownfield site, which was fast becoming an eyesore for nearby residents.
"This is our first partnership with Rainbow Homes, and we look forward to working together on this scheme and in the future."
The development is due to be completed in March 2014.