Qawra will get its own primary school and 400 parking spaces after the project was approved by the Planning Authority this morning.
The school, which will house 700 students and 70 employees, will ease overcrowding at the St Paul's Bay primary school that has had to cater for a child boom over recent years.
The school will be built at one end of a large field close to the Qawra church, inside the development boundaries.
The Foundation For Tomorrow's Schools said only 100 car park spaces were required to cater for the school but a decision was taken to have a two-floor underground car park with 400 car spaces that will be open for the public.
The school will also include a childcare centre, sports facilities that can be accessed externally and other community facilities.
The target date for completion is end 2017 or beginning 2018.