The scheme for the old Coloroll plant at Riverside Mill will be the biggest new housing project in the centre of town for decades, and the proposal is to open up the culvert over Walverden Water to make it a pleasant natural feature.

The aim is to attract private sector redevelopment of the site and the council is working on a draft planning brief to create links between the new development, surrounding residential areas and the town centre.

The site was home to the cotton trade for most of the 20th Century. It included Riverside Mill and Bradley Shed. But the mill was then taken over by Coloroll, the wallpaper giant, and later John Wilman.

The site has been vacant since 1999 and in 2003 a major fire led to the old mills being demolished. Pendle Council is of the view it should be used for housing rather than industry.

The draft planning brief will soon go to the Bradley residents' group before being considered by councillors and is a key part of the masterplan to regenerate the Bradley area.

The streets around it are dominated by terraced homes and the plan is to introduce more varied housing, including larger family homes, first time buyer properties and single person accommodation.

There are significant changes in levels on the site, it needs to be assessed for flood risk, and a decision will have to be taken on whether the mill chimney - currently used as a mobile phone mast - should go. The planning draft suggests, however: "The chimney can be a positive attribute to the site's redevelopment, acting as a visual focal point and reference point in any development scheme."

It suggests Walverden Water can become a "positive landscape feature" and adds: "It is a feature which provides a significant potential open space link to the surrounding areas, in particular to the south, and the linkage to the proposed waterside linear park is an important part of any redevelopment."

Access to the area needs to be considered, and the report says vistas of the surrounding countryside are a key factor.

The masterplan adds: "The vision is to enhance and integrate the new development into the existing residential communities surrounding the site, rather than reinforce differences and leave the new development isolated." It says it can link areas separated for many years.