Construction has begun on 597 social and affordable homes in Shanganagh in Shankill, Co Dublin.
The development is being undertaken by Dún Laoghaire-Rathdown County Council, along with the Land Development Agency.
The homes will be a mix of sizes, including 99 three bedroom properties.
They will be built to a 'passive house' standard, meaning a significantly lower energy consumption than traditional homes.
The homes will also have limited car parking provision, with the developer prioritising bicycle parking and nearby public transport links.
Just over half of the homes will be offered at cost rental, with a third being made available as social housing.
The remainder – 91 homes – will be available as affordable purchases.
The first of the properties are due to be available at the end of 2024.
"Shanganagh is exactly the kind of development we envisaged when the LDA was established - a State-owned developer and homebuilder building new housing on publicly-owned lands," said Taoiseach Micheál Martin, who attended a sod-turning ceremony at Shanganagh. "It’s really encouraging to see significant progress being made and the start of the largest public housing scheme in the State.
"It’s another important step to achieving our target of building 40,000 new homes a year by the end of the decade."
"Breaking ground here at Shanganagh is a very important moment for the LDA in delivering on our mission to accelerate the delivery of affordable housing on State land," John Coleman, CEO of the LDA.
"We are particularly proud of the scale of this scheme, which will be the largest direct-build public housing scheme in the State in recent years.
"The project’s design is rooted in sustainability and energy efficiency and will deliver a large quantity of much needed affordable and social housing to the area."