Plans to build a crematorium, funeral chapel and a car park on a Ribble Valley Remembrance Park have been submitted.
The proposals for the Mitton Road-site in Whalley will go before planners at Ribble Valley Borough Council soon.
The 3.7 acre site in Whalley, which went up for sale in 2012, has a driveway leading through mature woodland to the graveyard.
The last interment at the Whalley site was in about 1970, although some scattering of ashes has taken place up to 2003.
The Ribble Valley Remembrance Park was the final resting place of 995 patients of Calderstones Hospital from 1915 to 1993.
At the end of the plot is a dedicated area for men from the area who died during the First and Second World Wars, which is maintained separately.
Plans for the crematorium have been welcomed by community stalwart and Whalley resident Mel Diack MBE and Whalley Parish Council.
Mel said: “I understand that the developers needed to make some alterations to make access easier for the fire services and had to submit new drawing plans.
“I have always been a supporter of this application.
“The developers have promised to look after the 1,000 graves on the site.”
Meanwhile, Mr Dave Sleight, chair of planning for Whalley Parish Council, said: “I and councillors were concerned with the original planning application.
“In the delegated report of this application, a comment is made that the developer had noted our concerns and had ‘re-sited the building so that it does not affect any of the graves’.
“The borough council apparently see this as only a ‘planning issue’ and therefore, as chair, I am to contact the Ministry of Justice.”