CONTROVERSIAL plans for a housing estate, considered by Deputy Prime Minister John Prescott, are advancing.
The development at Middleton-St-George, which is on the site of the former Durham Tube works, was referred to Mr Prescott for final approval earlier this year.
But he decided not to intervene and planning permission was finally granted by Darlington Borough Council.
The Northern Echo has learnt that houses could be built on the Darlington Road site by early next year.
Residents had objected to the plans for 80 houses because they fell outside the council's local plan.
They argued that to give permission to the development would set a precedent.
Reclamation work on the brownfield site has been taking place during recent months.
The former Durham Tube Works, previously Arnott Young, undertook the scrapping of railway engines and carriages.
Three large ponds in the centre of the site were used as a dumping ground for toxic waste. This is said to have included asbestos boiler lagging, batteries and other chemicals including heavy metals.
Housing developer Yuill Homes is understood to be paying about £2m to bring the contaminated site into use.
Nigel Bell, land director of Yuill Homes, said: "The development will feature a range of three, four and five-bedroom detached homes within a landscaped setting, and we expect to have a presence on site by early next year.
"Existing buildings have been demolished and reclamation and remediation works carried out in accordance with National House Building Council regulations.
"Government planning policy requires the use of such brownfield sites, and we are pleased to have the opportunity to create an improved landscape on the edge of this picturesque village."
Middleton-St-George ward councillor Doris Jones had objected to the plans, saying the village was too congested for a big housing development.
She said concerns remained about the impact it would have on the area.
These included a fear that surface water from the development would add to the pressure on nearby Neasham Beck, which flooded last year
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