Housing Minister John Healey has announced a £60 million fund to build over 600 new energy efficient eco-homes.
The money will be split between four locations which were named as the first wave of eco-town sites in the UK last year.
Whitehill-Bordon in Hampshire, St Austell in Cornwall, Rackheath in Norfolk and North West Bicester in Oxfordshire were all chosen for the project.
Kate Henderson, chief executive of the Town and Country Planning Association, commented: "This first phase of new homes, including state-of the-art 'eco-show homes', will provide real life examples of green living that are open to the public, providing a vital role in giving local residents first hand experience of low carbon living."
It is hoped that by 2016 the number of eco-homes built in the areas will have increased to 10,000, with designs aiming to provide "world-leading environmental standards".
The towns will also include zero carbon schools and accessible public transport.
Posted by Emily Thomas
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