Outline planning consent has been given to an application to build 1,510 new homes to the north west of Horley.
The development, on land at Meath Green, will be delivered via a consortium comprising Crest Nicholson and A2Dominion as well as Taylor Wimpey and Persimmon Homes.
An agreement drawn up between the developers and Reigate & Banstead Borough Council and Surrey County Council will see £40million paid by the developers for infrastructure such as investment in highways, public transport, education and leisure.
Preliminary works are planned to start in the spring with the construction of a temporary access road, followed by a new western access road from the A217.
The residential development will then be built in four phases, taking approximately 10 years to complete.
It will include a site for a new primary school; a neighbourhood centre with shops and a community hall and sites for a pub/restaurant, a place of worship, a medical centre and employment space; play facilities; two allotment sites and improved pedestrian and cycle routes linking the new neighbourhood to the town centre.