Bolsover DC has agreed to create a development firm after its preferred contractor, Woodhead Construction, went into administration.
Dragonfly Development 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 build bespoke commercial developments.
Council chief executive Karen Hanson 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 our current developments would continue and the establishment of this company is the next phase in ensuring we deliver what we said we would.'
