Work starts soon on Clitheroe Road, Brierfield, as the site is prepared for the first phase of new housing called Foxhills.
The project is being led by PEARL, the joint venture company between Pendle Council and Barnfield Construction.
The site neighbours other PEARL projects including Northlight at Brierfield Mill, twelve homes on Holden Road and the Quaker Heights development, part of the historic Lob Lane Mill site.
The development of 36 properties will include two and three bedroom bungalows and three bedroom semi-detached homes.
Coun. Mohammed Iqbal, Leader of Pendle Council who leads on economic development said: “We’re delighted that work is getting underway to help us offer a wider housing choice in Pendle in an area we are transforming.
“When the development is finished it will provide a range of modern homes which will be great to live in, close to our flagship project of Northlight.
Gareth Smith, Project Manager at Barnfield Construction explained: “This development will be in a great position between town and country, next to the Leeds and Liverpool Canal with excellent commuting links.
“This development keeps up the momentum started through the new PEARL homes on Holden Road and at Quaker Heights to totally transform this area,.”