Works have started to build homes on the Standen Estate in Clitheroe by homebuilder Taylor Wimpey Manchester.
Ribble Valley Borough Council granted outline planning permission for more than 1,000 homes, including 312 affordable properties, on Pendle Road, in April 2014.
As part of the works, preparations will also soon be under way to build the much-anticipated roundabout between Pendle Road and the A59.
Mark Dawson, technical director for Taylor Wimpey Manchester, said: “Our development in Higher Standen has been a long-time in the planning and we’re thrilled that we’re now able to begin the build and bring high-quality homes to the area.
“As a responsible home builder, with a commitment to the safety of our people and the public, we continue to work closely with Ribble Valley Borough Council and Lancashire County Council to ensure the swift delivery of this much-anticipated roundabout.
“We expect this road safety measure will make a real difference to traffic and safety concerns in the area.”
Lancashire County Council are provisionally aiming to commence the works to the A59 roundabout in the spring of next year.
When complete at the end of 2018, there will also be new vehicular, pedestrian and cycle access onto Pendle Road, Worston Old Road and Littlemoor. The development will also boast public open spaces, including green corridors with ecological benefits.
Lancashire County Councillor Keith Iddon, cabinet member for highways and transport, said: “This junction has been a long standing issue, with numerous accidents over the years, so we’re pleased that this development of new homes will provide a solution that local people have been calling for. These changes should reduce the chance of serious incidents from happening and help to improve road safety for everyone.”