Work is underway at the Stratford District Council subdivision site, following a site blessing on Monday.
Over 5ha of land will be turned into a subdivision of 33 sections, which will be for sale later this year.
The land was purchased by Stratford District Council in May last year for the project. The entrance will be off Pembroke Road opposite the northern end of Brecon Road. With a focus on affordability, Council won't make a large profit from the project, but will recoup costs and invest in town growth.
Mayor Neil Volzke says the subdivision is something Stratford has been in need of, and it is something he is proud to have pushed for.
"It's something I have supported all along and I am really pleased it is going ahead."
On Monday, representatives of Ngā Ruahine and Ngāti Ruanui joined with the mayor and deputy mayor, council staff, neighbouring landowners and staff from Taranaki Civil for a karakia and turning of the first soil.
Taranaki Civil was awarded the contract to create the subdivision.
The names of the four new streets in the subdivision will be announced soon, following a Council competition asking for Shakespearean-themed suggestions.
After the karakia, led by John Hooker of Ngā Ruahine, the mayor officially turned the first soil.
He said the location gives views of the maunga and he was confident the sections will sell fast.
"It really will be a first class subdivision, and is helping get Stratford growing again."
Jim Turahui, of Ngāti Ruanui, said he was pleased iwi were present at the soil turning and agreed with Mayor Volzke that the view was great.
"From up on the mountain, the view down to here is good, so of course the view from here up to the mountain is a great view too."