Work starts this week to prepare land for the construction of new homes within the £150m New Bolton Woods urban village development, near Bradford.
Construction teams will tackle flooding and drainage issues and work to overcome potential building difficulties caused by steep slopes within the urban village.
West Yorkshire Combined Authority said that without its £3.6m Growth Deal investment the land would have been significantly more difficult and expensive to develop for new housing.
The overall plan is to grow an attractive and sustainable residential neighbourhood with a wide range of new facilities as part of a regional growth strategy.
Construction on the site is expected to be completed in 2021.