A new eco-community is back on track after Cornwall Council agreed to accept a £1.4million hand out from the Government.
The sprawling plan for 1,500 new homes, a primary school and employment space West Carclaze, near St Austell, had been put on hold by developers Eco-Bos due to the economic climate.
But Cornwall Council successfully bid for £1.4m of funding from the Department for Communities and Local Government for developing of the next phase of the scheme.
Yesterday, the authority's Cabinet voted to accept the grant. This funding will now be used to develop a new masterplan and planning application for the West Carclaze site.
John Hodkin, managing director at Eco-Bos Development, said they were pleased with the positive outcome.
"We remain fully supportive of the regeneration process in Mid Cornwall and look forward to working with the Council and other partners to fully explore how the scheme can be taken forward."
Julian German, Cornwall Council's cabinet member for economy and culture, hailed the decision, saying of the plan: "The aim is to achieve a high quality development which will both serve local people and attract investment to the area."
The proposed new planning application would be smaller than the original submitted by Eco-Bos after comments from the local community were taken on board.
The council has already drawn up plans to improve the A391 at Carluddon and to create a new technology park next to the new road between Scredda and Penwithick.
Planning permission has already been granted for these schemes and work is underway on developing the road improvements and employment infrastructure.