Construction of the first houses in the St Andrews West expansion could begin next year.
A landowner has applied for planning consent in principle for up to 350 homes on fields south-west of Younger Gardens.
Consent is also sought by Mount Melville Ltd for the erection of a budget hotel, pub and restaurant, shops, business units and a health centre.
Land west of the university town is earmarked for more than 1,000 new homes in Fife Council’s development plan for St Andrews and East Fife.
If permission is granted, work could begin on the first 35 houses in the latter part of 2016.
Craigtoun North, as the 42-acre site is known, is about to go on the market and Mount Melville director Mike Younger said there is already interest from house builders, and in the hotel and pub/restaurant.
The family firm is keen to find construction companies which will produce a high-quality development.
He said: “We want something which will stand the test of time and be sensitive to its surroundings.”
The land, he said, is regarded by many as more suitable for expansion than other parts of the St Andrews West strategic development area.
The new houses, he said, would include 100 affordable homes of varying sizes and help address the shortage of family accommodation in St Andrews.
He said: “There has been no significant land release around St Andrews for 10 years or so. Pockets within St Andrews have been developed but nothing around the outskirts.
“There will also be some local convenience retail at that end of the town there is virtually nothing.”
The development, he said, would also have a wider economic benefit for the town, bringing in more people who are economically active.
Construction of the houses would be carried out in five phases over eight years. A community hub in the south of the site would contain several small shops, including a convenience food store, and the proposed offices, pub and restaurant, health centre and hotel.
Determination of the planning application is expected early next year.