EDMONTON -- City council has approved a plan to build a new neighbourhood in southwest Edmonton that will include a hospital and an LRT station.

The new neighbourhood will be located on 127 hectares in the Heritage Valley area, between Ellerslie Road and 28 Avenue SW, just west of 127 Street SW.

The neighbourhood, owned by the province, will have homes and businesses, stormwater ponds, a centrally located park and a school.

"The development of the plan was a collaborative effort between the City and the Province," said Rhonda Toohey, acting branch manager of city planning. "This close collaboration has resulted in a plan that establishes a clear vision for the future development of this important node in Heritage Valley that is expected to be home to as many as 3,900 people."

Hospital construction is expected to begin next year and open to the public in 2030.

The city says new neighbourhoods typically take 10 to 15 years to get built after council approval.