WESTLEA Housing Association joined councillors, residents and contractors at a site ceremony to mark the start of work at its 54-home development at Stokes Croft, Calne.
After the ceremony the parties involved in the £3.6m development project signed a partnership charter in the town hall.
The new houses, a collection of one, two, three and four-bedroom homes are being built on the site of 40 1960s pre-cast reinforced concrete flats that were demolished.
The charter was signed by representatives of Westlea Housing Association; Willmott Dixon Housing; North Wiltshire District Council; Calne Town Council; Stokes Croft Resident Liaison Group; BBA Architects; and Gemma Building and Design Services.
Westlea's chairman Daphne Wheeler said: "I know how pleased we all are that construction is now finally underway.
"It may have taken longer than we'd anticipated but now we can all look forward to having new homes by next summer."
Tim Wilson, Director of Property Services at Westlea Housing Association, paid tribute to the teamwork that's been such a feature of the project.
"We've all been working with a clear target of providing homes that will be adaptable, flexible, able to meet future needs, and of a style that is distinctive and pleasing in appearance. It's important that the new development will be one that enhances the community."
Extensive consultation with local residents has meant they have had input into the design of new homes.
The project was awarded Social Housing Grant funding of around £1.1m from North Wiltshire District Council and support from Calne Town Council included the sale of a redundant recreation area, now to be replaced by a new playground within the development.
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