The housing development in Kirkcaldy is part of the council's plan to build 2,700 new 'affordable' homes by 2017.
The project will see 161 units built at Overton by Robertson Partnership Homes.
It will include a mix of flats, houses, bungalows and four-in-a-block homes.
The initial phase of the development will be ready for its first tenants in Spring 2017, with the entire project complete in early to mid-2017.
-- Advertisement --
The scheme is the largest council housing development to be built in over 20 years.
Cllr Judy Hamilton said: "It's great to see work under way here at Overton Road. The private housing development originally planned for this area was stalled a number of years ago and I'm very pleased that the Council was able to purchase this disused land and work with Robertson Partnership Homes to bring forward what will be a lovely mixed development for the new tenants as well as the people who already own homes here."
In addition, work is also underway to deliver 101 new homes in Methil.
(LM/CD)
