The planning application for the £300m Chesterfield Waterside was given the green light by Chesterfield Borough Council last week, completing months of negotiations.
Chesterfield Waterside Partnership chairman Peter Swallow explained: "This is a significant milestone for Chesterfield. The Waterside scheme will play a key part in the area's modern awakening.
"Now we can turn the thriving and exciting new place which is the vision of the Masterplan into a reality."
The vast regeneration site spans over 60 acres and is a short walk from the town centre.
The River Rother and Chesterfield Canal waterways are at the heart of the development and the newly constructed canal basin will form the focal point of the scheme as a whole, creating a new destination for the town.
This area will also become the permanent home for the famous Rosewall Sculpture, the iconic artwork by Dame Barbara Hepworth, purchased last year by Chesterfield Borough Council with help of an Arts Fund Grant and funding from Waterside Partnership.
The planning decision is the culmination of an extensive masterplanning process led by Chesterfield Borough Council.
Leader of the Council Ray Russell said: "The Chesterfield Waterside development will be a tremendous boost for our local economy and general landscape. It will completely transform this area of the town into a modern, vibrant and attractive place to live, work and socialise."
The masterplan was prepared by Manchester-based How Planning and world renowned regeneration consultants, AECOM, whose projects include the new Olympic Village in east London.