Planning permission has been granted for the £50m Foxhall Village estate of 400 new houses to be delivered by Hollinwood Homes in partnership with Blackpool Council.
Designed by architect Broadway Malyan, the homes will be built on two plots of land off Rigby Road in the resort.
The development includes a mix of two, three and four-bedroom homes.
Seventy social housing properties are being built for the Great Places Housing Group.
The development will be linked to the town centre, promenande and nearby parks by a series of walkways. There will also be communal gardens for residents.
Rigby Road will also undergo a series of improvements as part of the area's wider regeneration.
Mark Chadwick, residential development director of Hollinwood Homes, said: "By working in partnership with Blackpool Council, we have been able to deliver a development that really meets the housing needs of the town.
"These new homes are high quality, energy efficient and at an affordable price, with plenty of outdoor space, in a fantastic central location that really unlocks the potential of the whole area."
Rhian Stratton from Nexus Planning, who advised the developers, said: "The concept of this development was to bring back into use this largely derelict site and create a vibrant community in the heart of central Blackpool, while bringing positive economic benefit to the area."