The Barratt Group firm is planning to start on its first development this summer with 43 new homes planned in the area.
Sales director Adrian Bird said: “We are looking forward to introducing buyers in South Wales to the quality, space and style of David Wilson Homes.
“And we are delighted to be establishing the brand as a key player in the Welsh property market.”
The first new homes from David Wilson Homes South Wales are set to be launched at Caerwent this summer with the launch of Centurion Park.