A significant breakthrough could help end the limbo which has stopped thousands of homes being built across large parts of Norfolk.
Councils have been unable to approve plans for new homes within the catchment areas of the River Wensum and Broads since March - because of fears such developments will pollute waterways.
But council leaders hope a new way for developers to calculate the impact of their schemes - and new evidence the effect on waterways is less then feared - will help unlock the block on decisions over homes.
They believe it could mean decisions on some major schemes could be made at the end of this year and some smaller schemes by next spring.
South Norfolk Council leader John Fuller, chairman of the Norfolk strategic planning member forum, said: "With the impact less than feared, we will be working constructively with builders to allow them to get back to work whilst ensuring no adverse impact to the Wensum and The Broads.”
Government advisor Natural England had said councils could not approve plans involving 'overnight accommodation' until they could prove they would not lead to more phosphates flowing into waterways.
Such nutrients reduce oxygen in the water and make it harder for aquatic species to survive.
The directive left councils struggling to figure out how to provide mitigation for what is known as nutrient neutrality - with consultants paid £75,000 to help come up with a way forward.
And council leaders hope they are on the brink of solving at least part of the issue which has prevented them from allowing plans for homes.
They say a calculator created by consultants Royal HaskoningDHV, with Natural England's involvement, will help people lodging planning applications understand the likely nutrient load associated with their schemes.
It also includes mapping to help applicants understand how their scheme is affected by the requirements - and what measures would be needed to ensure they are nutrient neutral.
Councils say the calculator and mapping is a "big step forward", but acknowledge more research and guidance will be needed to establish what sort of compensatory measures would be suitable.
Mr Fuller said: "Councils have been able to undertake bespoke, detailed predictions of the potential leakage of phosphate from toilets, dishwashers and washing machines arising from the building of new homes in each part of Norfolk.
“We have been able to take into account many factors including future household occupancy figures, rainfall, local sewage catchment areas and even the proportions of second homes to really understand whether a proposed development will cause substantial harm to a small number of special areas of conservation.
“The good news is the analysis by specialists Royal HaskoiningDHV shows actual phosphate levels arising from development is significantly lower than initially feared and in some cases small developments in many rural areas will cause no harm to sensitive landscapes.
“With the impact less than feared, we will be working constructively with builders to allow them to get back to work whilst ensuring no adverse impact to the Wensum and The Broads.”
Some developers will be able to provide nutrient mitigation on or close to the housing development.
However, the government and council recognise this will not be possible for all sites.
Natural England is working on a system, which would mean developers could buy 'credits' for woodland and wetland schemes to mitigate for nutrients created by their projects.
But that could take some time to be up and running, so Norfolk councils are working on their own credit system involving buying in to other solutions, such as water reduction schemes.
Council officers hope that could be in place by spring next year, while decisions on major schemes - where developers get their own larger scale mitigation measures in place - could be made by the end of this year.
Prime minister Liz Truss, had also signalled she would scrap the nutrient neutrality requirement blocking decisions on building homes.
Her economic plan includes investment zones, including one in Norfolk.
In such areas regulations would be relaxed and planning processes streamlined, but that has attracted criticism.
The Bishop of Norwich and a coalition of conservationists have branded it an "attack on nature", which will mean the countryside will be concreted over more easily.
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