As previously revealed by the Peterborough Telegraph, Barratt and David Wilson Homes has been in contact with Fenland District Council for the major development on land south and west of 300 Eastrea Road.
And the housebuilder has now submitted a formal application for 203 homes which could incorporate a new Aldi store, albeit that will require separate planning permission.
The proposals from BDW Homes Cambridgeshire are for agricultural land just north of Gildenburgh Water.
Neighbouring the site is the former Eastfield Nursery, which recently received planning permission for 169 new homes, as well as a development from Larkfleet Homes.
Under the plans, there would be 35 two-bedroom homes, 98 with three bedrooms and 70 with four, although none of the properties would be affordable housing “due to viability considerations”.
There would be two access roads - one to enter the development and another to access the adjacent site via a T-junction.
In addition, there would be 505 parking space - of which 13 would be allocated for visitors - while BDW Homes said it would create a new park and Local Area of Equipped Play (LEAP).
The application adds: “The Eastrea Road development will deliver a sustainable and sensitively designed town extension.
“It will be a place with a variety of homes and opportunities for social interaction, a welcoming place with a strong sense of identity and links to local greenery and nature.”
It is hoped that planning permission will be granted in the autumn with works starting on site next spring and the homes completed within four years.
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