A housing project with up to 86 "zero-carbon" houses and flats and a business park is planned on the outskirts of Plymouth. Around fifty new jobs will be created as a result of the plans.
Plymouth City Council is working with developer CornerstoneZED to kick start the project on the outskirts of the city at Bickleigh Down.
An on site facility will employ up to 33 people to assemble zero carbon homes and will provide the opportunity for longer term employment as other developments for zero carbon communities are created around the country.
A potential further 26 jobs will be created at a green business hub designed to encourage other green firms to come to Plymouth.
The council said the "eco village" would include up to 66 zero-carbon houses and 20 flats for sale and rent with "further opportunities for self build".
The project will be the UK's first large scale, zero carbon community that delivers direct economic benefits with sustainable jobs. Central to the proposal is Bickleigh Down's potential to stimulate the local 'green economy'.
The government wants all new homes in England to be zero-carbon, by 2016.
Councillor Ted Fry said: "Sustainable housing is a significant area for future housing growth which is very important for Plymouth.
"This project is also great news for the city's economy."
Tim Byles, chief executive of CornerstoneZED, said the project "paves the way to putting Plymouth on the map as a centre of excellence for the low-carbon industries".