The Hawke's Bay is getting four new neighbourhoods and nearly 400 new homes.
On the outskirts of Havelock North, in the Iona area, 55 hectares of rural land will be rezoned as residential land from 19 September.
Since the 1990s, as demand for more housing grew, the land has been identified by the Hastings District Council as having the potential for new growth.
Now Environment Minister David Parker has approved a zone change and the homes can be built.
A Streamlined Planning Process directed by the government has enabled council to free up highly sought after residential sections, Hastings Mayor Sandra Hazlehurst said.
"It has saved us substantial processing time, which in turn has meant sections in high demand can come to market much faster for our community."
The zone change paves the way for four new neighbourhoods with a variety of section sizes to meet the needs of all age groups and life stages, accompanied by significant reserve spaces, the council said.