A planning application has been submitted to build up to 700 new homes on the former Staveley Works site.
The proposed redevelopment also includes a primary school, new wildlife habitats, retail and community facilities, a cycle and footpath network and a marina on the Chesterfield Canal.
Formerly an iron and steel works, the 100-acre brownfield site is set to benefit from more than £100million of investment, which will link the communities of Brimington, Hollingwood, Staveley and Barrow Hill.
The first homes are expected to be available in around five years' time while redevelopment is scheduled to last around 10 years in total.
During the building and infrastructure work, the development promises to create around 200 construction jobs.
The completed project is anticipated to support around 800 jobs in the commercial, leisure and education sectors.
The planning application has been submitted to Chesterfield Borough Council by Chatsworth Settlement Trustees, part of the Chatsworth estate, which has owned the land since the 17th Century.
Andrew Byrne, property development director, said: "Since closing as an industrial site, Chatsworth has been keen to put something back into the community by redeveloping Staveley Works in an attractive and creative way that provides modern housing, community facilities and jobs for people in the area.
"We held a public consultation in December and got a very positive reaction to our plans.
"We believe we've put forward imaginative ideas to redevelop the site.
"We can't wait to get started."
Chesterfield MP Toby Perkins said: "It is great to see another vote of confidence in our town with this development, which will add both the homes and infrastructure that we need.
"Brownfield sites such as Staveley Works are perfect for ensuring we get the new houses needed, with a minimal impact upon the local environment.
"I look forward to seeing these plans in more detail."
A borough council spokesperson said a decision on the planning application would be made in the coming months.
The once-bustling Staveley Works site has been derelict for several years when its 200-year history of industrial development, including mining and iron and steel making, came to a close.