Work is about to begin on the first stage of LandCorp's new residential estate in Onslow, with Ertech named as the preferred contractor to undertake Stage One civil works.
A total of 220 lots will be built, with the potential for over 300 dwellings that will house more than 700 people.
Lands Minister Brendon Grylls said the extra lots would help ease a shortage of residential land in Onslow.
"The first lots from Stage One are expected to be released at the end of 2013 and will be offered to local residents first," he said.
"With major resource projects under construction nearby, led by Chevron's Wheatstone development, Onslow's population is expected to grow by some 1500 new residents over the next three to four years.
"This land is crucial for Onslow to grow into a vibrant and sustainable town as part of the Liberal National Government's Pilbara Cities vision."
Mr Grylls said as well as traditional residential lots, a 9ha super-lot would be developed close to the existing town site to accommodate workers at Wheatstone.
Stage One will also incorporate 13 grouped housing sites to help deliver housing options, including opportunities for service worker accommodation.
Mr Grylls said LandCorp was putting approvals processes in place to meet Onslow's future housing needs.
The Department for State Development, LandCorp and the Shire of Ashburton are collaborating with other service providers to upgrade town infrastructure and amenities.