An outline planning application to build 1,000 new homes at Chatteris was approved in principle by the Fenland District Council planning committee on Tuesday.
The housing development, by Hallam Land Management Ltd and BS Pension Fund Trustee Ltd, will see residential dwellings, retail space, a new primary school and playing fields built on land between the A142 Iretons Way and London Road. The Grade II listed Tithe Barn will also be refurbished and community use has been suggested once it is complete.
The S106 contribution is in excess of £6 million, including £500,000 secondary school contribution and almost £400,000 Community Transport contribution.
The plan will return before the committee at a later date for full approval once it has been worked out in more detail. The S106 contribution schedule also needs to be finalised by council officers.