A five-year regeneration project in a south Wales valleys town will see a new village created on a former colliery and a new school and hospital built.
The old Penallta colliery will be transformed into a new village
The plans to redevelop Ystrad Mynach and its surrounding area have been approved by Caerphilly Council.
A 650-house village will be built on the site of the former Penallta colliery complete with a school.
And the Welsh Assembly Government is considering plans for a new £97m 266-bed general hospital in the town.
Caerphilly Council, which has formed a partnership with a number of agencies for Ystrad Mynach's regeneration, has also announced that new £20m council offices are to be built along with a new link road to the new village.
It is hoped that 600 new homes will be built at the site
A new police station will also be built, while improvements will be made to the recreational facilities at Penallta Country Park.
Other schemes to be included in the five-year plan will see better public transport facilities, a proposed expansion of the local college, new business developments at Tredomen Business Park and a new recycling facility and civic amenity site.
One of the major schemes to be included in the regeneration is the transformation of Penallta colliery, which closed in 1991, into a new urban village.
Planning consent has been granted for 139 homes and it is hoped that around 600 houses will eventually be built on the site.
It will also see the refurbishment of the colliery's power hall, winding towers, ancillary buildings and two lakes.
The scheme will also include the county's first bilingual school being constructed.
Work has already started on the new village and £3.7m link road.
A 266 bed general hospital could be built in the town
The site of a new general hospital to replace nearby Caerphilly Miners' Hospital has been selected at Ystrad Fawr - opposite Ystrad Mynach's current hospital - and is awaiting planning permission from the Welsh Assembly Government.
"A number of possible sites were considered for the new hospital and the Ystrad Fawr site was deemed to be the most suitable," said Judith Paget, the chief executive of Caerphilly Local Health Board.
"There are still some outstanding issues to resolve but I'm hopeful that work on site, subject to the necessary assembly approvals, can start in 2007," she added.
As part of the hospital proposals, council offices at the Ystrad Fawr site would be demolished to allow further development of the site.
Staff would be transferred to a new building near the current council offices at Tredomen.
Caerphilly Council leader Harry Andrews said the regeneration plans would make the town and its area more attractive.
"It is a very exciting time and we are very positive about the scheme," he said.