The village of Manthorpe in Grantham will see the construction of 480 new homes along with a primary school and neighbourhood centre.
The £95 million project has been greenlit after housebuilder Allison Homes acquired the land.
The build will start this summer, while homes will be available for purchase from next year, with show homes launching in May 2025.
The mixed tenure development, called Manthorpe Chase, will be located on land north of Longcliffe Road and span over 93 acres.
Sophie Kendal, land and partnerships director at Allison Homes East, said: “We are very proud to have secured this land in Manthorpe and I’d like to thank the whole team at Allison Homes, who worked exceptionally hard to get this acquisition over the line.
“Manthorpe Chase will be our fifth active site in Lincolnshire and forms an important part of our growth plans. As some of our existing Lincolnshire developments come to the end of their construction, Manthorpe Chase will become our flagship development in the region, and we are very excited to get started on building the first of the 480 homes.”
Allison Homes will provide £5.3m worth of S106 contributions, which will go towards supporting the area’s NHS, education services, cycleways and off-site highways improvement works.