A major housing development - which will increase Didcot's population by a third - has been approved by planners.

South Oxfordshire and the Vale of White Horse district councils have given the seal of approval to the 3,300 home Great Western Park development on the western edge of the town.

And a £65m package of facilities for the growing population has been secured in a deal with housebuilders Taylor Wimpey.

Bulldozers are expected move on to the site, which lies in both districts, next year.

The company is one of a number of major building firms affected by the current financial downturn, but a spokesman said it would be pressing ahead with the development.

He said: "Taylor Wimpey is committed to Great Western Park.

"We still need further approval on certain matters, but we expect construction to commence in 2009.

"We continue to evaluate our existing and future site programme on the basis of local market conditions."

The 180-hectare site will stretch from the A4130 in the north of Didcot to the Wantage Road and south to Park Road.

Developers aim to build 50 homes in 2009, 250 in 2010, and 400 a year thereafter.

The whole development is expected to take 10 years to complete.

Alongside the houses - 1,000 of which will be 'affordable homes' - two new primary schools, a secondary school, open spaces, shops, services, play areas, two community centres and a health centre will be provided.

A road linking the A4130 through the development to the Wantage Road at a new junction will also be constructed.

Taylor Wimpey will also improve roads around the town, including the Rowstock and Power Station roundabouts, off-road cycleways and a link to Cow Lane bridleway in the west.

Didcot Town Council leader John Flood said the go-ahead was excellent news and meant that the second stage of the Orchard Centre development could go ahead with more certainty, because extra customers would be guaranteed.

South Oxfordshire district councillor Angie Paterson, cabinet member for planning, said: "It's great news the Great Western Park development now has the stamp of approval."

Taylor Wimpey will submit final plans, illustrating the final details of the site, for approval later this year.

Before any houses are built, roads, drainage infrastructure and landscaping must be completed.

Vale district councillor, Mary de Vere, said: "It has taken a long time to negotiate a comprehensive package of infrastructure provision, financial contributions and affordable housing, but the end result is a development which will benefit existing and new residents."

However, residents living near the development site were less pleased with the news.

Ken Mills, 65, of Slade Road, said: "It's disgraceful. I worry about the new people coming, and the extra traffic along the Didcot-Harwell Road, which is terrible now."

Don Robertson, 76, also of Slade Road, said: "We've been against it from the start."