Building work on the multi-billion pound Sherford development near Plymouth will start soon, seeing the construction of 580 new houses.
The town will have four schools, a library, GP surgery, town hall, community centres and parks.
Some local people have raised concerns the development does not contain an ambulance station and that local hospitals will struggle to cope.
The developers, the Sherford Consortium, forecast the new community will inject £2 billion into the local economy.
South Hams District Council and Plymouth City Council granted their permission for the first phase of this major development scheme that will boost the buiding industry and help growth.
Leader of South Hams District Council John Tucker said: “This advanced step in planning approval is a milestone which marks the real beginning of Sherford as a town, bringing much needed housing and jobs to the area.”