Developers can build 116 new homes in Knottingley.
Gleeson Homes was granted planning approval from Wakefield Council to begin the construction of two, three and four bedroom detached and semi-detached houses off Pontefract Road in the town.
The homes will form the second stage of a masterplan for the site, which includes a total of 475 houses, commercial space including a small shop and pub, and a primary school.
Phase one, the construction of 176 homes, is already underway.
Knottingley Councillor Glenn Burton said: “All three councillors did have concerns in the beginning about pressure on services including school places, GPs and the road network.
“There has been a long term issue for Knottingley in terms of there being a lack of homes for young people starting out. This development is catering for this and we are now getting more choice in homes, encouraging people to live in the area.”
Fellow ward councillor Graham Stokes added: “I understand that most of the homes in the first phase have now been filled, so the development is bring people in, which is a good thing for local businesses and the local economy.
“Knottingley is very short on school places and we are hopeful the development will help with this through the provision of land for educational use.
“We could now do with more businesses coming to and investing in the area to provide more jobs for the people living here.”
The development, to the east of Ferrybridge Service Station and to the west of Knottingley Town Centre, will be accessed from Pontefract Road.