The town of Pembroke Dock could be dramatically transformed by a £70m marina development featuring houses, shops, bars and restaurants.
The marina is designed to attract more visitors to the area
The scheme entitled Martello Quays, promises to create up to 200 jobs in an area hit hard by job losses.
Plans include 160 residential properties, as well as 500 boat moorings and a leisure development.
But there are some concerns about the size of the project and the presence of two other marinas nearby.
Local councillor and council cabinet member Brian Hall said the scheme would help the area, which suffered when the ITV Digital call centre laid off 900 staff in 2002.
"It will regenerate the town - 40 to 50 years ago, Pembroke Dock was the shopping centre of Pembrokeshire," he said.
"That can now be rejuvenated."
The site for the scheme, which could feature a cinema and a hotel or casino, is opposite Neyland on the Cleddau estuary between Hobbs Point and the ferry terminal to Ireland.
The Anglesey Boat Company, which is also involved in building a marina at Fishguard, is working with construction firm Cambrian Holst on the project.
They hope to get planning permission by the end of the year, and building work could start early in 2007.
Apartments and houses in the scheme, which is based on a similar development in Pwllheli, north Wales, are expected to cost from £110,000 to £240,000.
Developers say work on the marina could start early in 2007
Project manager Keith Williams, said Pwllheli's marina brings in around £20m to the local economy each year.
"We would hope that could be replicated elsewhere in Wales and certainly in Pembroke Dock," he explained.
"We believe there is a need for a network of marinas around the Welsh coastline giving safe passage for experienced and inexperienced sailors."
He said Wales could then be sold as a sailing destination equal to anything in south east England.
But some local people are worried about whether the project, named after the area's Martello tower, would block their views of the estuary.
Concerns have also been raised over whether there will be demand for property so close to refineries and Liquefied Natural Gas plants.