A development of 90 homes on the Larnaca Works site near Bermondsey Spa will now go ahead after an injection of cash from the Government.
Larnaca Works is one of nine stalled building projects in London that have passed what the Government describes as "stringent tests" and met conditions to receive Kickstart cash to get them building again.
The developer Findon Urban Lofts will receive £4 million to enable work to continue on the scheme designed by Hawkins\Brown and Hamiltons architects which forms part of the Bermondsey Spa regeneration area.
The scheme is being marketed as Grange Garden by Union Developments. It is billed as "an oasis of tranquility" for "modern city living".
A March 2008 brochure for the development describes how "a stunning waterfall flows down the full height of the Cascade Building providing a unique backdrop to the imaginatively designed Japanese-style water gardens".
A year ago Southwark's planning committee agreed to reduce the amount of affordable housing to be provided at Grange Garden but the scheme still proved unviable.
The scheme will now include 72 flats for market sale and 18 social rented homes.
"Thanks to millions of pounds of Government cash housebuilders are building again creating jobs and helping to tackle the shortage of affordable homes," says housing minister John Healey.
"After over a year at a standstill, many projects are back on track to provide homes for first time buyers, social tenants and market buyers alike."