Warrington-based Arley Homes has acquired a derelict 11.7 acre site at Duxbury Park in Chorley from United Utilities and submitted plans for 135 homes.
The sale represents one of the largest single land transactions in the North West this year.
Arley has registered detailed proposals with the local borough council for a development of family houses plus green open spaces and a children's play area, linked by pedestrian pathways.
The site already had outline planning permission for 200 homes and was formerly home to a United Utilities conference and training centre which was demolished earlier this year. Arley has taken the decision to reduce the density of properties in its application to create the children's play area and larger homes with more generous gardens.
The plans include a range of two, three, four and five bedroom houses. The site will be accessed from Myles Standish Way and was purchased from United Utilities following an open tender which saw Arley Homes emerge as preferred developer.