Andorra Developments has received the final approval for its development at the former RAAF Stores Depot site.
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The multi-million dollar development was waiting on the green light from the Office of Environment and Heritage before construction could begin on the mixed residential, tourism and industrial precinct.
Dubbo Regional mayor Ben Shields said he thought everyone would be relieved to see work going ahead at the important site.
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After years of it looking more untidy and falling further into disrepair, it will be great to see it reach its potential,” Cr Shields said.
“I am glad the Office of Environment and Heritage were able to make their decision quickly and allow progress to happen at this important site.”
The site will include more than 400 houses. There will also be a tourism zone which could be used for food and beverage buildings like a cafe or pub, as well as accommodation.
Andorra Developments purchased the site in 2011. The work is expected to start next year.