Duloe is set for new affordable housing after strong support from the local parish and community helped secure council approval for 18 new homes.
The homes will be delivered by a community land trust (CLT) and developer and landlord Aster Group.
Cornwall Community Land Trust, one of the most active CLTs in the country, has exchanged contracts on a 53,000 sq. ft. greenfield site in Jubilee Close from the Duchy of Cornwall.
The two- and three-bedroom homes will be available for Duloe residents or those with a strong connection with the local area, with 10 for shared ownership and eight for affordable rent.
The development will be managed by Aster and built by local builders J.J Jones & Sons. Construction has started with the homes due to be completed by January 2019. The homes will be managed and maintained by Aster once completed.
Amanda Williams, group development director at Aster Group, said: "CLT partnerships are an important way of creating new affordable homes in rural areas. It allows communities to come together and decide what they want to build in their locality and to lead the development and management of new homes for people in or connected to their village.
"We have made a commitment to deliver affordable homes in rural areas as part of our social purpose. By supporting community-led schemes like Jubilee Close we can back the long-term future of our region's villages and, ultimately, build more houses, helping to achieve our goal of ensuring everyone has a home."
Helen Downing, development manager at Cornwall Community Land Trust, said: "We have already successfully delivered over 200 new homes across Cornwall through CLT schemes like Jubilee Close. This development represents a fantastic opportunity for Duloe, bringing new affordable housing to residents currently priced out of the market."
Andrew Mitchell, Cornwall Council cabinet member for homes, said: "Cornwall Council has provided almost £400,000 to help Aster deliver a scheme of 100% affordable housing. I'm delighted that construction on this site will soon be underway to deliver the type of housing that Cornwall needs."
CLTs are non-profit organisations which are set up to plan, deliver and maintain development projects to meet the needs of their local areas.