Bellway's plans for the Forest Walk development, located to the east of the A48, secured planning consent on Friday, 23 February.
Forest Walk will bring 170 private and 30 affordable homes to Lydney.
The development will enhance ecology and wildlife on the land, while creating natural open spaces which will be accessible to the wider community. This includes a green corridor leading from the north of the site through to a large area of parkland to the south.
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The energy-efficient homes will have solar panels and electric vehicle charging points.
Simon Hughes, Development Manager for Bellway, said: "Forest Walk will be a sustainable development that helps to meet the needs of local people looking for their first or next home. This includes private and affordable housing, with a broad choice of house designs and sizes.
"In addition to providing homes, green spaces and investment in infrastructure, the development will create and support jobs in the Forest of Dean and across Gloucestershire."
Forest Walk is part of a wider scheme of 320 homes, employment land and a new neighbourhood centre, which will generate more than £2.9 million investment in education, roads and other services.
Bellway previously built 90 homes at Archer’s Walk in Lydney and had been seeking more land in the area.
