Almost 300 homes are to be built on an industrial site that was initially planned for redevelopment 10 years ago.
Durham County Council is to build 282 homes on the site at Stephenson Road, between Peterlee and Horden, after its plans were approved on Friday.
Planning permission was initially given to build 390 homes on the land in 2014 but progress on the redevelopment stalled.
Conservative councillor Patricia Jopling said it was an “absolute joy” the council was turning something “so ugly into nice housing”.
Locals had complained the area had become a hotbed for anti-social behaviour and crime, according to the Local Democracy Reporting Service.
Peterlee West councillor Susan McDonell, of The North East Party, said: “Residents have had to endure rising anti-social behaviour including fly-tipping, vandalism, and arson, as well as undesirables who use the estate for drug taking, gang meetings and rat runs as they tear around on their off-road and quad bikes.
“Affordable, good-quality housing is desperately needed in this area.”
A second planning application detailing the appearance and layout of the new estate is due later this year.
A housing developer will then be invited to build the estate.
Funding is already in place from Homes England towards the cost of redeveloping the brownfield site, the council said.
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