A £250,000 cash boost is set to transform a rundown part of Huncoat into a leisure haven.
The Within Grove area has been in a poor state for years and suffers from problems of crime, vandalism, and fly tipping.
Now it is hoped that investment from Lancashire County Council's REMADE scheme could be accessed to improve the site, which had a huge number of properties demolished in 2003.
Hyndburn Council wants to develop the land, off Bolton Avenue and around the railway line, for recreational and leisure use and a bid has been submitted to the county for funding.
There are plans to form pedestrian routes and a cycleway linking Huncoat and Higham playing fields in Accrington.
Hyndburn's housing business manager, Rona Courtney, said: "At this stage all funding is provisional but the prospects are encouraging.
"Preparations for the redevelopment will begin this year with a view to being on site in 2007."
The Within Grove area is blighted by empty and derelict properties. There are 40 long-term empty properties on the estate, which Hyndburn Council has said require around £10,000 investment each to bring them back to a liveable standard.
Local councillor Brendan Shiel said: "There are many people who have lived in that area for 50 years and have seen it deteriorate. They deserve to see it improved."
The council is holding a public meeting to discuss the issue and Coun Marlene Haworth said she hoped to see a good turn out.
The meeting will be held at 2pm on Wednesday, March 1, in the QE Room, Scaitcliffe House, Ormerod Street, Accrington.
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