City councillors have voted to move forward with plans for Lincoln's £250 million Swanpool housing development.
Proposals for the Western Growth Corridor had sparked controversy after it was revealed the City of Lincoln Council's 3,000 home project would be built on land at risk of flooding.
However, leader Ric Metcalfe has said he hopes a "master plan" for the site will place the housing into areas of safe land within the development.
Councillor Metcalfe told a meeting of the council's executive that the Western Growth Corridor is the "biggest and best" chance of boosting housing and employment in Lincoln.
The meeting on Monday, December 9, saw councillors voting to move ahead with the proposals, after years of stop-start plans being dashed by concerns over flooding.
Afterwards, Mr Metcalfe told the Echo: "The Environment Agency have withdrawn the objection that they had.
"We know we cannot only develop here safely but we can also improve the flood protection for the rest of the city, which is an important message to get out there.
"We have satisfied the Environment Agency that there are solutions available."
Previous proposals to build on the land in 2006 were stalled over land sale problems and flooding worries.
However Mr Metcalfe added: "We are talking now about a smaller number of houses than originally planned so we will not be developing on flood plains.
"The housing development will take place where there is no flood risk, but the detail has yet to be worked out so when we decide what is going where exactly, it will all fit together."
The finer details of flood defences are set to be discussed early next year, but could include land drainage systems and make use of the natural landscape.
Up to 3,000 homes will be created, with 600 of those being made affordable, along with shops and business units.