Reigate & Banstead borough council has granted outline planning consent for 1,510 homes on land at Meath Green in Horley, Surrey.
The plans include a new primary school, a neighbourhood centre and a pub/restaurant. A quarter of the new homes will be affordable.
A consortium of Crest Nicholson, A2Dominion, Taylor Wimpey and Persimmon Homes will deliver the homes and provide £10m of infrastructure, in addition to a £30m payment to the council for further infrastructure investment.
Stephen Stone, chief executive of Crest Nicholson, said: “The transformation of this site into a thriving new community will deliver a mix of much-needed, high-quality new homes for the local area. We have spent a long time working in partnership with the local authority to ensure that the plans genuinely enhance the existing locality, and that we are not only building a mix of new homes, but also implementing the necessary infrastructure to cultivate and support a new and thriving neighbourhood.”