Plans are being drawn up to build 200 houses on a 21-acre site in Peebles.
The proposed development, east of Kittlegairy View, would contain a mix of property types, with 50 being offered as affordable housing.
The planned estate would be expected to take four years to complete.
The application has been submitted to Scottish Borders Council by Buckinghamshire-based developer Taylor Wimpey and Edinburgh firm AWG Properties.
Andrew Roberts, strategic land and planning manager for Taylor Wimpey said: “We are delighted to be lodging this planning application and to have the opportunity to address any perceived constraints involving the site.
“Issues around flooding can be overcome, and we are pleased to note that development can be accommodated by the current bridge.
“We have also had positive preliminary discussions with the baptist church over the development of a facility on the site, for use by the whole community.
“We were conscious through our various discussions with the community that there was an urgent need for such a resource, especially given the lack of provision on the south side of the river.”
At the end of last month the council also received notification that York-based Perisimmon Homes intends to start a pre-application consultation for the development of around 50 new homes next to South Park industrial estate in Peebles.
Along with two other ongoing housing development applications for March Street Mill and Rosetta Caravan Park, with a total of an additional 200 homes, concerns have been now raised regarding the speedy growth of the town.
Stuart Bell, Tweeddale East councillor, told the Southern that he fears “a difficult time is approaching for the community of Peebles”.
He said: “This flurry of interest in housing applications in Peebles on the south side of the Tweed will produce a number of dilemmas.
“Not only will there be significant doubts about the capacity of the transport infrastructure to cope with both developments but there are concerns that if both go ahead the town could be growing unacceptably fast.”
He added: “I have been stating for many months that Peebles cannot stand still. It is an attractive place to live but to keep it attractive any new developments need to be at a pace with which the local infrastructure can cope and need to preferentially provide the affordable housing that local people require and for which there is significant demand.
“I am yet to be convinced that either of the two new proposals for more housing in Peebles on the south side of the Tweed will meet these requirements.”
South of Scotland MSP, Christine Grahame, said: “There is a need for housing in Peebles area and, while the consents required are a matter entirely for the Council, I would trust that a substantial number of socially affordable homes within the range of local people would be part of any agreed consent.
“I would also have concerns for example if facilities such as local GP surgeries would be unable to cope with any increased demand and consider that councils should now give broad consideration to the impact on local services, beyond roads and so on, in granting any developments”
However, the planning permission in principle application states that an area of the site would be safeguarded for the future development for use for employment, business and community use.
A design statement submitted in support of the application also says that the development “will secure a number of economic and fiscal benefits in terms of job creation, direct and in-direct through construction and new employment land provision.”
Peebles Community Council is due to discuss the plans for the Kittlegairy View plans at its next meeting on Thursday at 7.30pm in the Council Chamber.