Most of the homes could be built in the valley by 2016
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Planners have approved a proposal for up to 5,500 new homes in Devon.
Sherford Valley has been earmarked for a development of new homes, as well as community facilities such as schools.
South Hams councillors are now to submit the revised masterplan for the new community for examination by a government inspector.
Opponents of the scheme can express their views during a six-week public consultation exercise which is due to be held later this month.
The new town - which would be made up of smaller, sustainable linked communities - would provide at least 4,000 new homes by 2016, with capacity for up to 5,500 if needed. The plans currently envisage a community just south of the A38 at Deep Lane, but extending south to the outskirts of Elburton.
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