A self-build 20-homes development planned for Boreham Road in Warminster, will be one of the first of its type nationally.
The site, near the Bishopstrow roundabout, has been bought by a developer, which will put the infrastructure in place, allowing people to build their own homes.
The developer has proposed to put £350,000 from sales of the plots towards new affordable housing in the town.
Town councillors recently put the scheme forward for a Neighbourhood Development Order, which will mean local people are involved in consultation on the housing design and other matters.
Cllr Tony Nicklin said: “This is an exciting project and I believe we are one of the first towns in the country to take up a project of this type.
“It involves the community directly in housing, rather than housing associations or local authorities, although they can sponsor the self-built homes.”