A former gas works site in Poplar will be transformed into a housing development with includes shops, a park and a secondary school.
St William Homes has been granted permission to build up to 2,800 flats along with retail, leisure and community space at the site by the Lea River.
The company, a subsidiary of the Berkeley Group, has promised to offer up to 980 (35 percent) of the properties at affordable prices.
The proposals were given the green light despite 'major concerns' from locals about the strain the work will put on transport and amenities.
The London Wildlife Trust had also objected to the plans citing concerns about the environmental impact in the area.
However council officers, who recommended the plans, said in a report: "Officers have given full consideration to the environmental statement and are satisfied that the significant effects that would have been considered likely to occur during both construction and operations would be adequately mitigated by the proposed measures."
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