Temporary pods for homeless people are to be built at a car park in Reading town centre.
The scheme at the back of Cattle Market Car Park on Great Mollys Street, is expected to save the council almost £1 million a year.
The units will have 24-hour support on the site.
The plans were confirmed by the Reading Borough Council's Policy committee on Monday.
More than 160 rough sleepers have been placed in emergency accommodation in Reading since March.
Councillor John Ennis, lead member for Housing, said: "I cannot think of a council in the south east that has housed as many rough sleepers."
"We don't want to return to having people on the streets of Reading but that is a massive challenge. We're going to say let's have a go."
The pods could be built by October this year.