Peak Valley Housing Association and Rowlinson Construction have started work three shops on Hattersley Road West in Hattersley.
The shops are part of an overall masterplan for the site that will also see 33 two bedroom apartments built on the site of the current retail units, which are being demolished. The new shops will be built next to the apartment block.
The £4.7m project was supported by £2.5m from the Homes & Communities Agency.
"This part of Hattersley needs the facilities offered by new retailers and the local community has given its support," said Phil Corris, managing director of Peak Valley Housing Association.
"The retailers will not only service existing residents but also new residents who will be moving into the area as part of a major new housing scheme."
Rowlinson Construction will also be building new apartments which will be rented by Peak Valley to the over 55s market.
It is anticipated the whole scheme will be completed by March 2012.