The £25m regeneration of Stockbridge Village in Merseyside has been given the go-ahead by councillors.
Knowsley Council's planning committee approved plans to build a huge complex including a primary school, swimming pool, gym and police access point.
Work has already begun to clear the site ahead of the development and building work is expected to begin later in August.
The council said it would "make a real difference to people's lives".
A children's and family centre, learning resources centre, a games area and a supermarket are also included in the plans.
Councillor Dave Lonergan, cabinet member for regeneration, said: "This is fantastic news and I am delighted that these ambitious plans have received the stamp of approval by the planning committee.
"This regeneration project will completely transform Stockbridge Village centre and provide first class facilities and spaces for the local community to enjoy.
"The redevelopment of Stockbridge Village has long since been a major priority for the council and we have worked extremely hard with our partners to bring to life the aspirations of the community."
The new primary school is due to be the first completed part of the scheme, and will open in autumn 2011.
A number of jobs are expected to be created during the construction process, the council said.