Planning consent has been approved for 160 homes in Clayton-le-Woods, near Chorley.
Turley Associates gained outline planning permission on behalf of Redrow Homes from Chorley Council.
The approved scheme will provide a mix of two, three and four bedroom family homes, including 48 affordable units.
The decision follows a successful appeal in September by Redrow for 135 homes in the neighbouring settlement of Whittle-le-Woods.
Robin Buckley, senior planning manager of Redrow Homes, said: "There is a real need for new and affordable homes in Lancashire which is not currently being met.
"This permission enables us to continue to deliver high-quality homes for families living and working in the area."
Sam Ryan, director of Turley in Manchester, said: "This is a good decision for Redrow, a developer with a strong record of building at the heart of the Lancashire community."
The outline permission forms part of a larger site at Clayton-le-Woods the council earmarked in its emerging development plan for 700 new homes, and 50 acres of employment land.
The allocation is being promoted by a number of developers and the Homes & Communities Agency.
The Redrow permission follows the approval of a scheme for 300 homes as part of the wider site.