Ambitious plans could see 250 new homes and huge new flood defences come to Padiham and Hapton in a multi-million pound scheme.
Burnley Borough Council and the Lancashire Enterprise Partnership are applying for £8.25m. from the Government’s Homes and Communities Agency and the Environment Agency.
If successful, the scheme, known as the North West Burnley Growth Corridor, would create 250 homes on the former Baxi site in Padiham and the Shuttleworth Mead Business Park in Hapton.
A key purpose of the ambitious two-year project is to protect homes and businesses in Padiham from the floods, which caused terrible damage to the town in December last year.
The scheme would protect nearly 10,000 homes and businesses from the River Calder which burst its banks on Boxing Day.
The bid also includes plans to create 622 full-time jobs in manufacturing and logistics.
The development would also provide opportunities for the East Lancashire Cycle Network to be extended.
If the application gets the go-ahead, the work could begin in financial year 2018/19.