Almost £1m has been awarded to Norwich City Council to unlock development of up to 250 new homes at the old Mile Cross depot.
The cash, released from a £5.8m funding pot from the Land Release Fund, aims to support councils across the East of England to free up land for new homes.
The council-owned Mile Cross depot, close to Valpy Avenue, was closed by the council last year, with the last businesses leaving the site in March.
The area is an allocated site for housing in the city local plan, with a minimum of 75 homes and small business workshop units.
In 2011 plans were approved for the old City Care council depot to be turned into a business centre with lets of up to five years.
Money from the Land Release Fund is expected to allow for the demolition of existing buildings containing asbestos and to decontaminate the site of ground gas and other chemicals.
The successful bids will release the land for development by March 2020.
Councillor Mike Stonard, cabinet member for sustainable and inclusive growth at Norwich City Council, said: 'This is a really important development site for us so we were delighted to secure the largest amount of funding in the eastern region for what was the council's former Mile Cross depot.
'This signals a great step forward in the site's future development and a firm move towards delivering more homes in Norwich.'
Other winning bids from the region include £160,000 for Broadland District Council to implement a new water drainage strategy, off site highway works and a pumping station to enable up to 22 new homes to be built in Great Plumstead.
Cllr Andrew Proctor, Leader of Broadland District Council, said: 'Our ambitious growth plans have always shown the council punching above its weight in terms of what we have been able to deliver. Our vision for Broadland is to support providing more homes for everyone and this funding boost for Great Plumstead supports this ambition.
'The fact that our own company, Broadland Growth, will deliver this development, alongside recognition from the highest level that our strategy to support and deliver for local communities is in line with the national vision, makes this even better news for the council.'
A further £300,000 has been allocated to Breckland to relocate pelican crossings and install a new mini roundabout so that up to 44 new homes can be built at Shipdham.
£670,000 has also been awarded to St Edmundsbury for development at St Olaves Road, in Bury St Edmunds.
Housing and Planning Minister Dominic Raab said: 'We are investing £5.8m to build roads and provide utilities, so councils can release the land to get up to 1,389 new homes built.
'It's part of our strategy to build the homes Britain needs, and carry local communities with us.
'We're determined to make buying or renting more affordable for young families and those on low or middle incomes.'
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