Work has begun on building 165 new homes on land at Hassocks Golf Club.
Housebuilders Bellway are undertaking the development - to be known as Kingsland Gate - on a 23-acre site at the south eastern edge of the golf club.
The new homes, including 50 ‘affordable’ properties, are expected to be finished by next spring.
Bellway spokesman Daniel Williamson said: “Our plans for Kingsland Gate have been carefully thought out to complement the reconfigured golf course and the existing surroundings in Hassocks.
“As well as providing new homes in the village, we are also retaining almost half of the development site as public open space, which will benefit both our new residents and the rest of the community.”
Meanwhile, Bellway is to hand over more than £1.8 million in financial contributions to local schools and community facilities as part of a Section 106 planning agreement for the Kingsland Gate development.
Bellway say this will include £616,000 for local primary education, £663,000 for secondary education, £192,000 towards pitch improvements at London Road recreation ground and £110,000 towards the development of a pavilion for community use.
Additional contributions include £101,000 towards healthcare, plus support towards police and library services and public rights of way improvements in the area, say Bellway.
The firm is also providing a play area at the development which will be open to the public and an off-site footpath connection to the recreation ground to the south of the site.