West Lindsey District Council is forging ahead with plans to build up to 500 new riverside homes in Gainsborough.
The council are trying to secure the development of two brownfield sites along the River Trent.
These sites, which are part of Gainsborough Housing Zone, could deliver up to 500 new homes and mixed uses to compliment the town centre.
The sites, known as Riverside Gateway, which is visible to people entering Gainsborough from the south or west, and Riverside North, which is to the north of the town centre, run right along the boundary of the river.
The Homes and Communities Agency has awarded grant funding of £155,000 to help the council realise its growth agenda.
Eve Fawcett-Moralee, economic and commercial director at the council, said: “The Housing Zone has created the catalyst to regenerate Gainsborough.
“This additional funding demonstrates the government’s confidence in the town and the council’s ability to deliver.
“We now have detailed strategies and market interest to secure the development of the two brownfield sites along the River Trent and deliver up to 500 new homes and mixed uses to compliment the town centre.”
The funding, from the Homes and Communities Agency, will enable the council to strengthen its development team with the skills and expertise required to drive the project forward.
As previously revealed, The Greater Gainsborough Housing Zone is one of only 10 designated outside of London by the Government in 2015.
Housing zones are designed to encourage the speedy redevelopment of former previously developed sites known as brownfield land.
This funding follows the recent announcement of £4 million allocated to The Gainsborough Growth Project. The money from The Greater Lincolnshire Local Enterprise Partnership is to increase the pace of housing delivery in the town.