Ambitious plans to regenerate the 100-acre site have been on show in the town this week.

Development group Paloma Ltd, which bought the factory from C6 Solutions in 2005, has been gathering responses to the plans for the waterside community, which may also include a primary school.

Alison Drake, chairman of Castleford Heritage Trust, said: “We desperately need this opportunity to develop the site.

“It’s good for the town – we don’t have industry to go there but housing is the next best step.

“People like living near the river but we need to ensure we can keep our riverside access and have good flood defences.”

Paloma’s masterplan – which could end years of speculation over the site’s future – includes three family neighbourhoods curving along the lines of the river and railway track.

Further development potential would also be unlocked as a chemical licence creating a restricted zone around the site would be removed.

Castleford councillor Tony Wallis said: “It’s a good scheme and housing is what’s needed there.

“A school was something I did not expect, I’d like to know if it would be a new one or replacement.

“I also hope developers look at how the houses will be affordable.

“What we don’t want is hundreds of empty homes and lots of people who need, but can’t afford, them.”

The scheme, expected to cost more than £10m, would be built partly on the site of the current Castleford Tigers’ stadium.

Arch Chemicals and an E-on power station would also stay on the site.

Castleford Coun Mark Burns-Williamson added: “We need to move forward and get the chemical licence removed. These plans are at a very early stage but concerns about highways will need to be looked at in detail.”

The masterplan is on display in Carlton Lanes shopping centre today. An outline planning applicaton for the scheme could be submitted to Wakefield Council in September.