West Norfolk council has stepped in to buy 21 acres of land in the Nar Ouse Regeneration Area for £850,000.
The site, which has previously been earmarked for development, was previously owned by Morston Assets, which went into administration in 2014.
It has outline planning permission for a number of uses including housing, retail and commercial development.
Parts have become overgrown and unsightly and the council will be looking to tidy these areas.
Alistair Beales, West Norfolk's cabinet member for assets, said: 'Driving local economic and housing growth are key priorities for us. Housing on this site had stalled long before the administrators came in.
'By purchasing this site, we can now take control, clean it up ready for development and then determine the best development options in order to provide much needed housing and employment opportunities.'
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