Persimmon Homes Cornwall has been given reserved matters approval by Cornwall Council for 527 new homes in Bodmin.
The scheme will include 132 affordable homes, split evenly between affordable rent and shared ownership.
All the new homes are designed to be energy efficient, fitted with air source heat pumps and electric vehicle charging points.
The development will provide over £3.5m in developer contributions, including £1.5m for education, another £1.5m for transport upgrades and a new bus route, and £370,000 for new traffic lights.
There will also be ongoing yearly income for public services, with £950,000 going to Cornwall Council, £137,000 to Devon and Cornwall Police, and £82,000 to Bodmin Town Council.
Construction is expected to create local jobs and training opportunities.
The project will also bring new green spaces, community facilities and ecological improvements, aiming for an 86.5% biodiversity net gain with measures like enhanced hedgerows and wildlife boxes.
Residents will have access to new parks, allotments, play areas, a community orchard and community centre, as well as over two hectares of landscaped open space.
Andy Hill, managing director at Persimmon Homes Cornwall, said: “We’re delighted to secure planning approval from Cornwall Council for this exciting new site in Bodmin, which will deliver over 500 much-needed homes for local people.
“Our plans will provide high-quality, energy-efficient homes, alongside major investment in local services and green spaces for local families to enjoy.
“With 25 per cent of the homes being transferred to a local housing association, we’re proud to be supporting jobs, skills and sustainability while helping more local people find a home to call their own.”
