A 700-home development on the former Cadbury plant at Keynsham has been given final planning permission.
Homebuilder Taylor Wimpey Bristol is developing the 220-acre Somerdale site, which has been empty since the chocolate factory shut three years ago.
As well as the homes, there will be employment space plus a mini-shopping centre, a new sports and social club with sports facilities and a primary school.
Work is already under way, with the demolition of one of the existing factory blocks known locally as Block D. This work will pave the way for the construction of a replacement Fry Club, the development's new sports and social facility.
Taylor Wimpey Bristol sales and marketing director Charlie Joseph said he was delighted with progress.
"As well as building much-needed new homes – including affordable housing – our development will bring many additional benefits to the local area, including new employment opportunities as the build progresses."
The scheme is progressing as Bath and North East Somerset Council has high hopes for its own £34 million regeneration of the town centre.
Authority leader Councillor Paul Crossley said: "Combined with the £34 million regeneration of the town centre, this is another boost to revitalising Keynsham as great place to live, work and visit.
"The council has been working hard alongside Taylor Wimpey to ensure that Somerdale has the right balance of homes, workspace for new local jobs and community facilities. This is an exciting development that will benefit residents both now and for generations to come."
The homes range from one-bedroom apartments to five-bedroom detached houses.
The Fry Club will be rebuilt to include new changing rooms, five flexible function rooms, a large sports bar with a skittle alley and a multi-activity room for community groups.
A new FA-standard floodlit football pitch and two new cricket pitches will be provided, in addition to the 13 full-size and two junior football pitches, two existing cricket pitches and nine-hole golf course which are being retained.
The local shopping centre will include a small number of shops, a medical centre, a riverside cafe, a care home, a new 210-place nursery and a primary school.
The proposals will also create a new riverside walk with a new cycle/pedestrian bridge over the River Avon, along with new public open space, including a wetland area for wildlife.
Some existing factory buildings will be used to create 10,000 sq metres of employment units.
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