Gwyn Clark, the Head of Planning for Eden District Council, says that there could be up to 560 new houses.
There are plans for more than five hundred new homes to be built in Penrith.
Persimmon homes wants to build the houses on the edge of the town at Carleton Fields.
A public exhibition of the plans will go on display at Penrith town hall on the 28th of November.
The development would also include a new primary school and a shop.
A third of the houses would be affordable homes.