Southwark council has granted outline planning permission for the first phase of a £1.5bn development at Canada Water, east London.

The approval follows an agreement signed in March 2005 between the council and a British Land-led joint venture, BL/Canada Quays, to work towards the regeneration of Canada Water.

The first phase covers a site close to Needleman Street and one next to Surrey Quays Road. Plans for these sites include 800 homes, retail space and a library.

The detailed public realm works surrounding both sites were also approved. These include a civic plaza, small community park and a series of streets, walkways, pedestrian and cycle routes.

A study of the transport infrastructure is under way and will be outlined in further detailed planning applications.