Didcot town centre may face major redevelopment to provide new housing.
Until now, expansion plans have focused on greenfield sites around the edge of the town.
But South Oxfordshire District Council's cabinet member for planning, John Cotton, said the town centre would be 'radically different' in 20 years time, with hundreds of new homes built in the area.
Work on a town centre action plan, detailing both housing and commercial regeneration, is likely to start next spring.
Mr Cotton said the plan would mean regeneration happened in a controlled way, avoiding piecemeal developments.
He said: "The town centre could deliver quite a number of houses, certainly in the hundreds, but until work has been done it is impossible to say."
He added: "I want the district council and the people of Didcot to work on that together."
This week the district council cabinet pushed forward with its bid to make Didcot one of the country's 'growth points' - taking on an extra 1,500 homes in return for Government infrastructure funding.
Mr Cotton said the council was satisfied the level of Government funding on offer made the growth bid worth proceeding with.
But he stressed the council would pull out if it felt the town could not absorb the additional homes.
Projects on the council's wishlist include improvements to the railway station forecourt, a feasibility study on the creation of a country park and integrated transport studies.
But Didcot Town Council leader Margaret Davies said residents were being kept in the dark over expansion plans.
She added: "SODC must explain how, when and where they have decided to build these houses."
Mrs Davies said urban regeneration would mean knocking down existing homes.
She said: "SODC is pussy footing around and not stating the reality here. People deserve better that this."
"If SODC is planning to rebuild in the town centre they need to dispel people's fears about which houses will be knocked down.
"It's time the council came out and explained to people what they have got in mind."
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