South Hams District Council and Plymouth City Council in the UK have granted permission for the first phase of the new £1bn town development in Devon county.
Authorisation received, construction works will start soon on the first 580 homes at the Sherford residential project, near Plymouth.
Designs for Sherford town include provision for four schools, a library, GP surgery and town hall, and several community centres and parks.
Once completed, the entire town will have 5,500 homes built by the project founder Red Tree.
The developer of the project is Sherford Consortium, which comprises Taylor Wimpey, Linden Homes, and Bovis Homes among others. The consortium believes that the new town will generate around £2bn for the local economy.
South Hams District Council leader John Tucker said: "This advanced step in planning approval is a milestone, which marks the real beginning of Sherford as a town, bringing much needed housing and jobs to the area."
Planning permission was granted in November 2013, with the 1,200-acre land purchase for Sherford completed in January 2014.
Sherford spokesperson James Koe previously said: "Sherford has been designed around the best qualities of successful towns that have been in the south-west of England for centuries, while ensuring that all the benefits of current know-how are applied to its delivery."
Planning to build the new town has been in process for more than 20 years, with the initial proposal dating back to the 1990s.
Image: Design of the proposed High Street for Sherford town, in the UK. Photo: courtesy of Red Tree LLP.