Lincolnshire is one of just 14 UK locations in line for the country's first garden villages after the Government unveiled ambitious plans.
Spitalgate Heath near Grantham has been earmarked for one of the new settlements, which are spread across Britain and will provide between 1,500 and 10,000 new homes each.
Plans announced last year for an urban extension of the town with the Spitalgate Heath development off the A52 would include 110,000 square metres of employment space, 4,000 new homes, a new primary and secondary school.
The aim is for these new villages to help hit housing targets, as well as offering its new community green open space, good transport links and affordable accommodation.
They will receive £6m over two years from the Government to complete projects at the sites.
Housing Minister Gavin Barwell said: