COUNCIL land is to be sold off to raise money for regeneration in villages surrounding Durham.
The Liberal Democrat city council is setting up a community fund to finance a series of projects.
It will also support schemes that benefit the whole district, such as the proposed new swimming pool at Durham Sixth Form Centre.
The money will come from the sale for housing of small plots of land in the villages.
City councillors hope the fund will help communities that are not officially categorised as deprived and, therefore, not eligible for funding from outside organisations.
Schemes to attract funding could range from improvements to buildings and streets, better public transport or recreational facilities and training projects.
The council said residents would be involved in decision-making about plans in their communities.
In areas of special need, regeneration schemes might be eligible for match-funding from the Government or the European Union.
Councillor Fraser Reynolds, cabinet member for the environment, said: "This is an important step which will enable us to realise our vision to promote flourishing communities. Each village will be appraised and the funds generated will enable us to promote really inclusive regeneration."
He said the move would mean all villages experiencing some of the benefits currently found only in places, which, on the basis of need, were eligible for funding.
Coun Reynolds added: "It will also mean that we can tackle one-off larger projects, which will be of service to the whole community."
Appraisals have been carried out at Witton Gilbert, Sherburn and Cassop, where 17 sites, out of 50 investigated, have been deemed potentially suitable for development.
Planning applications will be submitted to the development control committee.
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