Work has begun on building 96 homes on the site of the former Redmile Nursery in Pinchbeck.
Developer Bellway was granted outline planning permission for the site off Wardentree Lane in March 2019 with full permission having been granted by planning officers last month.
The site will be known as Pinchbeck Fields and have three and four-bedroom houses as well as 24 properties designated as affordable homes.
Financial contributions will include £190,971 towards primary education and more than £40,000 towards local healthcare services.
Phil Standen, managing director of Bellway Eastern Counties, said: “Our plans will transform what was previously a disused former nurseries site into an attractive new residential community.
“The development has been carefully designed to form a sensitive addition to the village as well as contributing to the supply of housing required in the area.”
