A development for 1,880 homes was unanimously given outline planning permission by councillors tonight.
The plans for land north east of Didcot, put forward by Croudace Homes and University of Reading, also include two new primary schools, a secondary school, a community hall and a sports facility with pitches as well as a pavillion.
Speaking after the planning meeting, county councillor for Didcot, Nick Hards, said he was pleased with the number of primary school places on offer.
He said: "Even when I took up my post as a Councillor in 1995 school places was a big problem.
"I feel confident that these new schools will provide enough places for the need which comes with the new houses.
"One thing I'm very concerned about is affordable housing."
It was announced at the meeting that only 470 homes, 25 per cent of the development, would be affordable housing.
Another 25 per cent of the 1,880 homes would be rented accommodation.
Cllr Hards added: "Didcot is becoming more and more expensive because we are failing to provide enough affordable housing."
Concerns were also raised about drainage, safe access for cyclists and traffic impact it will have on neighbouring village Long Wittenham.
The detail of the site will be decided at a later stage and will go before South Oxfordshire District Council.
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