SHERSTON Parish Council has backed county council plans to sell land adjacent to the village school and give up to half the money back to the school for improvements.
At a parish council meeting last week, councillors approved the plans, for land at Manor Close, following two years of debate with the county council.
The parish council has had the land independently valued at £2.5 million.
Improvements to the school will cost more than £700,000, and include a two-storey extension and replacing a classroom which is more than 150 years old.
"We have decided we have got the best out of this deal, while securing the school's improvements, and without anymore delay," said Tony Wood, the parish council clerk.
The houses on the field will be two, three and four bedroom homes and Mr Wood said the parish wanted to encourage people to stay in the village.
"We are fortunate to have a good availability of employment in Sherston," he said."But a lot of people leave school, get married and have to go and live in places such as Chippenham, and work in Sherston. We want to change that."
A total of ten affordable homes are also to be built at Knockdown Road.
As part of the deal, the county council has also agreed to put £5,000 towards footpath improvements.
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