The Scottish Government is investing £350,000 for new homes to be built in Southdale.
The scheme between Edinburgh and Glasgow will see around 380 homes being built by Taylor Wimpey and Bellway.
The land will also be transferred back to the Council to deliver a new Primary School at the site.
Sandra Carter, Director for Southdale developers, EWP Investments Ltd, said: "We are delighted to welcome the Cabinet Secretary taking time out of her busy schedule to break ground for the second phase of housing and would like to thank the community for their strong backing for this exciting development.
"Southdale is one of Scotland’s largest and fastest growing regeneration projects and over the next few months we will be engaging in some intensive promotion to attract investors into West Lothian and to our development, bringing with them considerable employment opportunities."
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