Contractors have closed off the old East Station Road to the public due to the ongoing demolition works at Fletton Quays.
Works to demolish part of the former Whitworth Mill building got underway in November, after Peterborough City Council purchased the mill site for £750,000.
It has now also been announced that the building of new homes at Fletton Quays will start in the new year.
The £120 million regeneration of the site at Peterborough’s South Bank includes 280 homes, leisure and retail facilities as well as prime office space.
Speaking about the latest development Councillor John Holdich, leader of Peterborough City Council, said: “I am delighted that work has started on site and am looking forward to watching its transformation in the coming year.
“The development will be a great addition to Peterborough’s city centre and really help to put the city on the map as one of the fastest growing and most vibrant cities in the country.
“It’s also one of the reasons why the council is improving the look and feel of the Lower Bridge Street and Town Bridge area as part of its overall regeneration plans.
“The Fletton Quays site had been derelict for decades, and this shows fantastic progress only two years after the council decided to create PIP [Peteterborough Investment Partnership] and push ahead with the site regeneration.
“It clearly demonstrates what can be achieved when a local authority is prepared to take a lead.”
The regeneration has been put forward by the PIP - a joint venture between Peterborough City Council and the Lucent Strategic Land Fund.
PIP principal development manager Howard Bright said: “Securing the site is a landmark step for the development of Fletton Quays and means that we will now start to see the results of all the hard work put in by PIP and our development colleagues over the last few months.
“We will be working closely with our development partners to ensure the safety of the site and to minimise any disruption for local residents.”
The closure of the old East Station Road is accompanied by a diversion of the public rights of way over the 24 hectare site.
A new road, improved riverside walkways and public footpaths and cycleways will be opened upon completion.
The council’s work to improve the look and feel of the Lower Bridge Street area will continue in the new year. The next phase will commence on Monday, January 9 and is scheduled to last for 13 weeks.
Improvements will also be made to the paving between East Station Road and the Old Customs House across the Town Bridge. One lane of traffic will be closed in both directions between 9.30am and 3.30pm, Monday to Friday. All lanes will be open at peak times.