Bolsover District Council has agreed to set up a new development company after its preferred contractor, Woodhead Construction, went into administration.
Dragonfly Development, the council-owned development company, has been tasked with generating income for the council and creating economic growth and community regeneration.
It will initially focus on helping the council build up its housing stock and building bespoke commercial developments.
Karen Hanson, the council's chief executive, said: 'We had to act quickly. When Woodhead Construction went into administration it left us with a black hole in terms of our current development projects.
'But we took quick decisive action to ensure all of our current developments would continue and the establishment of this company is the next phase in ensuring we deliver what we said we would.'
The council has already identified development projects for the next five-years, including 80 council properties in Whaley Thorns, Whitwell and Shirebrook and the new £3m Creswell Heritage and Wellbeing Centre.
