Construction has begun on the first new homes at Bath's £400m Western Riverside development.
The regeneration project will see a mixture of social and private housing on the 44-acre site, which had been derelict for more than 25 years.
Developer Crest Nicholson said with the new road infrastructure well under way, a significant start could be made to house-building.
Planning permission has been given for more than 2,000 homes on the site.
The Homes and Communities Agency (HCA) and Bath and North East Somerset Council have together committed £5.7m towards infrastructure work on the development.
The first phase will include a range of family houses, flats and 100 affordable homes provided by social landlord Somer Community Housing Trust.
The HCA has awarded the Trust £6m to provide those homes.
The first residents should be able to move in before Christmas, a spokesman for Crest Nicholson said.