Fife Council has approved plans for up to 1,650 new private and affordable homes.
A strategic framework planning document has been approved by members of the Levenmouth Area Committee.
The Strategic Land Allocation (SLA) will see the phased development of 15 hectares of employment land, as well as a new primary school, new local shops and facilities and greenspaces created on an area of land between Methil, Methilhill and Buckhaven.
Following the approval of the planning document by the committee, it will now become Supplementary Planning Guidance and will be put forward to guide and develop the proposals for the site.
The strategic framework document lays out the context and a land-use strategy for developing the site over a 20 year period.
Councillor Tom Adams, Chair of the Levenmouth Area Committee, said: "This is a significant milestone in the progression of this major development area. It sets out a sensible land-use strategy for the site and paves the way for a detailed masterplan to be produced.
"It also allows us to progress important projects including the new Secondary School and the Low Carbon Investment Park with confidence. The level of investment that will be generated by this site over the next 20 years will bring significant regeneration benefits to the local area, maintaining the positive momentum being seen from other developments like Diageo and the Energy Park."
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