The consent from Winchester City Council and Havant Borough Council includes includes a local community centre, land designated for healthcare and elderly care facilities, as well as two primary schools and a nursery.
Planners also granted detailed permission for the first phase of development, submitted alongside the outline application, which includes 194 new homes designed by local architect ADAM Architecture.
This first phase is due to begin on site later this year, and the traditionally designed homes will be in keeping with the character of the local area.
Initial infrastructure works are anticipated to begin in the Autumn with serviced parcels of development land to be sold onto house builders once work is underway.
Grainger will also make land available for allotments open green space for recreation.
The river Wallington, currently fed into a concrete channel, will be restored to support sustainable drainage systems for the new community.
John Beresford, director of development at Grainger said: “After many years in consultation, the benefits will now be seen in this new, vibrant community.
“Our approach to the design has a feeling of the English Garden Suburb Movement where community well-being is at the heart of our philosophy.
“The new village will provide a sports centre, playing fields, a new local pub, shops and schools. It will also create a new, diverse habitat for local wildlife by including features such as ponds and open spaces. We are very much looking forward to seeing the community come to life.”