A new housing scheme in Galliagh will deliver 200 new family homes by the spring of 2017.
The project - at Skeoge Link Road - is the largest social housing scheme for Northern Ireland in over a decade.
The first sod on the new development was cut this week by the North’s Social Development minister Mervyn Storey.
It’s being developed by Apex Housing Association and will deliver 197 new family homes. Work is due to complete in spring 2017.
While in Derry, the Minister also viewed work which is underway on another 11 new social homes at Moyglass Place, Strathfoyle. This scheme, which is being developed by Choice Housing, is due to be completed in March 2016.
Minister Storey said: “Everyone deserves somewhere they can call home and Housing Associations in Londonderry are doing a tremendous job in delivering social and affordable housing.”