Plans have been submitted to the North Kesteven District Council for 200 homes on the edge of Sleaford.
Holdingham Farms LLP plans to turn 13 hectares of land, east of Poplar Farm and south of the A17 in Holdingham into the new housing estate.
The site is currently used as agricultural land.
Plans consist of 200 homes with 20 of these homes being bungalows and 40 of them affordable.
Two sustainable drainage systems are also planned within the developments.
There is also further emphasis on the public and cycle transport links and the employment opportunities within the area.
North Kesteven District Council will vote on the plans at a later date.
This is the latest in a number of significant and sizeable developments in and around the town over the last six months.
The plans were previously approved for the creation of 290 homes in the area, however due to the reduction in the need for affordable homes, developers changed the total of planned homes.