Outline planning permission has been granted for up to 200 new homes on a 16-acre former employment site in Bamber Bridge, Preston.
Mosaic Town Planning acted on behalf of developer Gorrie Ltd in obtaining consent for the scheme, which is expected to include the demolition of the 100-year-old New Mill in Wesley Street.
The majority of the site is owned by Gorrie, which is based on the Isle of Man.
South Ribble Council own the site of the Mackenzie Arms pub, which is also part of the plans for the redevelopment of the area.
Guest Garsden is the agent for the site.
South Ribble Council bought the Mackenzie Arms earlier this year to help facilitate the wider redevelopment proposals at the New Mill site.
The proposal also involves a potential land swap with the adjacent Cuerden Church school which will help to ensure that access can be achieved from Station Road.
Mosaic submitted two development options to ensure that the site could be accessed independently if the land swap negotiations are not concluded.
A community consultation event was held in November 2012.