Energy group Engie has received the green light for its major regeneration of the former Rugeley Power Station site.
The decision follows three years of community engagement and planning and enables the French company to progress its proposals to create a new community on the 340-acre plot.
The long-term aim is to build a mixed-use development of 2,300 low carbon homes and a low-cardon school, 12 acres of employment space and a new country park alongside the River Trent.
Work can now start on infrastructure and remediation work which is expected to complete by the end of next year.
The phased development will begin on the north of the site where the coal yards are and its cooling towers due to be demolished on June 6.
Engie is also in talks about how it can support and enhance amenities for a number of local sites including the model railway, local allotments and the canal.
UK and Ireland chief executive Colin Macpherson said: "We have been in positive and productive communication with all the relevant local authorities and local residents for many years now as we pushed to drive forward with a powerful proposal that would enrich the local area and inject new homes, jobs and opportunities after the closure of the power station.
"We're delighted to now be in a position where we can start to deliver on this ground-breaking development and look forward to working closely with the local authorities and the John Taylor Multi Academy Trust as the scheme develops."
Darryl Eyers, Staffordshire County Council's director for economy, infrastructure and skills, added: "Now outline planning permission has been granted for the Rugeley Power Station site redevelopment, we can look forward to the project moving forward in the coming months.
"This is an exciting development for Rugeley, Staffordshire and the region and a great example of how the private sector is working with local government to help achieve a lower carbon future."
