Perth and Kinross Council has asked the Scottish Government for money to help build the first new council homes in the area for more than 20 years.
The local authority bid for £650,000 out of the £25m pledged by ministers for new council homes in Scotland.
It wants to build a total of 26 properties in Methven and Letham.
The price for constructing the properties is about £3.6m, excluding land costs, and it is planned they will be completed by 2011.
'Chronic shortage'
The plan is to build 20 family houses in Methven and six in Letham.
There are currently about 7,500 council homes in Perth and Kinross - the last ones were completed in 1985.
Housing convener, Councillor Peter Barrett, said: "This would allow the council to build more urgently needed affordable homes for families.
"I would urge the government to continue to support us in our efforts, as this is a vital issue for the future of Perth and Kinross.
"The chronic shortage of affordable housing to meet demand from people who are in housing need means that the pressure on our limited housing stock is immense.
"We face a lot of hard work to alleviate the significant affordable housing problem we face in Perth and Kinross, and this scheme to build new council homes is just one part of a larger strategy."
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