Planning permission has been granted for a mixed-use development at Northwich Marina.
H20, a joint venture between British Waterways and Bloc, is set to deliver the project - which includes housing, a restaurant and a Waitrose store.
House builder McCarthy & Stone will develop 58 homes for the elderly and the restaurant after a deal was struck between the company and H20.
Meanwhile, Waitrose will construct an 18,000 sq ft supermarket while improvement works will be carried out on the waterways which will result in the creation of a new marina providing up to 40 mooring berths and access to the waterfront.
Richard Thomas, director of Bloc and development manager for H2O, expressed his delight that the firm could begin to regenerate the "underused" site.
He said: "We have had strong support from the local community and this is an opportunity to deliver a significant phase of the town's regeneration plans.
"We appreciate the way in which Cheshire West & Chester Council has worked with us to create a scheme which will bring a range of local benefits and look forward to finding an operator for the waterside restaurant."
Author: Editor Gavin Pearson (firstname.lastname@example.org or 0207 202 0255)