Land in Keynsham has been sold for more housing by Bath and North East Somerset Council.
The authority has sold the 16 acres off Charlton Road for £12.4 million to Barratt Homes.
The sale is subject to Barratts getting planning consent for 250 homes.
The developer has confirmed that if it gets permission it will also make a donation to the Woodland Trust to improve facilities for people using Abbots Wood, enlarge the children's playground off Holmoak Road with new equipment and create a new roundabout off Charlton Road.
Councillor David Bellotti (Lib-Dem, Lyncombe), cabinet member for community resources, said the £12.4 million would be used to fund the council's capital programme.
"New homes on this site are part of Bath and North East Somerset Council's plan to rejuvenate the town. Together with the £34 million regeneration of Keynsham town centre and redevelopment of Somerdale, the council and its partners are supporting a town of new opportunities for people living here and their families.
"The new homes will also bring a noticeably improved playground facility and better pathways and facilities for users of Abbots Wood. We understand that Barratt Homes intend to submit a planning application in early 2014."
