House builder Cruden has been appointed by the City of Edinburgh Council to construct the Scottish capital's first council housing in a generation.
The firm will build 215 homes on the site of three former high rise blocks in Gracemount, which were demolished in October 2009.
The first phase of the programme will see 99 homes built, with a further 116 following in the second phase. At least half of the new homes will be affordable.
The council plans to build 1,300 mixed tenure homes for sale and rent across the city over the next eight years.
It is also investing up to £150m in the regeneration of the Gracemount, North Sighthill, and Pennywell & Muirhouse areas of the city.
Housing leader Councillor Paul Edie said: "The 21st Century Homes programme is a vital element of our ongoing long term regeneration plans for the capital and also demonstrates our commitment to tackling the desperate need for more affordable homes in Edinburgh."