Thousands more stalled homes across Norfolk could be unlocked after another £9m was handed to council leaders to kick-start construction held up by eco-rules.
Norfolk has been awarded £8.8m, on top of £9.6m it received earlier this year, to overcome the nutrient neutrality issue which left thousands of homes in limbo.
And housing developers have been urged to stake their claim for a share of the government cash boost.
The money will be used to unlock homes on hold because of a directive issued by government advisors Natural England more than two years ago.
That stopped councils from being able to grant planning application for homes within the catchment areas of the River Wensum and the Broads because of concerns nutrients created by development could go into waterways and harm species.
Councils were told developments had to prove they would not lead to an increase in phosphate or nutrient run-off - or measures to mitigate the impact would be needed if they would.
The issue led to the creation of the Nutrient Mitigation Fund, which makes loans available to bidders who want to provide mitigation, such as improvements to wastewater works, septic tanks and natural schemes, such as wetland.
But applications for money are outstripping the sum available, so leaders welcomed the extra government injection.
Sue Holland, Liberal Democrat leader of Broadland District Council and chairman of the Nutrient Mitigation Fund, said: "We have already made great progress across Norfolk in a relatively short time and this additional funding will enable a wider range of projects to be supported.
“Reducing the level of nutrients in our rivers will enable much needed homes to be delivered and help reduce the housing pressure, grow the Norfolk economy, and ensure that an essential part of our environment will continue to be protected."
The fund complements a scheme called Norfolk Environmental Credits, which councils set up to try to solve the issue.
That has attracted controversy, after it emerged it had paid a farmer almost £1m not to farm pigs on his land, near Caistor St Edmund, to offset pollution from new homes.
Council leaders say that helped unlock decisions on nearly 1,400 new homes by preventing pollution in rivers.
Developers keen to provide mitigation should visit www.nmfnorfolk.co.uk or email info@nmfnorfolk.co.uk
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