Council land in Nettleham is to be developed into extra care housing, which offers an alternative to residential care for those still able to maintain their independence.
The site will be made up of self-contained dwellings, meaning residents will be able to live in their own home, with access to round-the-clock on-site support if they need it.
As well as developing the Nettleham site, the council will be investing more than £2.5m into extra care housing across the county between now and the end of 2014/15.
West Lindsey District Councillor, Giles McNeill, Conservative (Nettleham Ward) welcomed the development saying:
"Since it became clear that it was no longer an option for the County Council to be providing care facilities, like Linelands, in Nettleham, directly; I have campaigned vigourously for the site to be utilised for the provision of care for the elderly.
"I am really pleased that plans are now moving forward rapidly to make new provision available, I look forward to seeing full plans in the near future."