Doncaster Council approved the application from Harworth Estates to build the homes, a supermarket, hotel and a school at the old Rossington Colliery site, near Doncaster.
Work on the project is expected to start after the link road between FARRRS and West End Lane opens in 2014, with the shop and pub first on the list to be constructed.
Tim Love, from Harworth Estates, the property arm of UK Coal, said: “There will be construction-related employment opportunities for the next 10 to 15 years as the development is built.”
An Inland Port rail freight terminal in Rossington was given the go-ahead a year ago.
Work started in July to clear the former pit. More than 13 million tonnes of colliery spoil and 950,000 tonnes of coal will be removed from the site over the next five years.