A farmer is to be paid public money to stop using his land to raise pigs - to help end a limbo blocking the building of thousands of homes in the county.
The highly unusual deal, which council chiefs say will be the first of its kind in the country, is part of a move to reduce the amount of nutrients flowing into Norfolk's waterways - and get housebuilding moving again.
It has raised concerns with the amount of money to change hands being kept secret by the South Norfolk Council - although a recent Swardeston parish council meeting heard the scheme could cost between £1m and £1.5m.
The deal will also prompt questions over the future of a major farming sector for the region.
The pig farm, on either side of the A47 bypass south of Norwich, is responsible for producing harmful nutrients which run into two nearby rivers.
By closing it down, the reduction in pollution mean that officials will be able to grant permission for 5,000 homes elsewhere in the county.
Under the terms of the deal, the farmer will be compensated and covenants placed on his land.
The covenants will mean pigs can no longer be farmed there, but would allow the farmer to grow arable crops, hay or to cover the land with grass seed or wild flowers.
WHY WILL THE FARM CLOSURE ALLOW HOMES TO BE BUILT?
The deal is part of an effort by Norfolk council leaders to find a solution to a limbo which has prevented councils in large parts of the county from being able to grant permission for new homes.
READ MORE: How two words left Norfolk's plans for thousands of homes in limbo
Since March last year, local authorities have been unable, after a directive by government advisor Natural England, to give housing the go-ahead in catchment areas of the river Wensum and the Broads.
That directive said councils could not agree new housing unless developers could 'offset' the extra nutrients which would flow from wastewater in the new homes, for example from washing machines and sewage.
Since then, councils have been trying to find ways to provide mitigation measures - and the deal over the pig farm is the first example.
The farmer - who has not named - will be compensated by Norfolk Environmental Credits Ltd, a joint venture between Norfolk councils and Anglian Water.
Councils are borrowing millions to lend to that company, so it can come up with mitigation schemes and allow decisions on homes to be made once again.
Livestock production produces large amounts of waste, including nitrates and phosphates, which end up in rivers.
The rivers Yare and Tas are close to the land which is currently being used for pig farming.
With the deal for the farmland, off Markshall Farm Road near Caistor St Edmund and Ipswich Road at Harford Bridge, the idea is that, by reducing nutrient run-off there, it would mitigate pollution from new homes built in other locations.
Developers would be able to buy 'credits' from Norfolk Environmental Credits to offset nutrients created by their housing schemes - and council bosses said that will cover the compensation price tag the company is to pay the farmer.
Council officers say the closure of the pig farm would mean they could grant permission for up to 5,000 homes.
Phil Courtier, director of place at Broadland and South Norfolk councils, said: "We are on the cusp of finalising a deal that will be the first of its kind in the country to release a significant number of homes and improve the environmental quality of the Broads and the river Wensum."
WHY IS THE SCHEME RAISING CONCERNS?
Council leaders said the deal with the pig farmer had come about due to 'word of mouth', rather than him being approached to take part in the scheme.
They are hoping more farmers will come forward to help provide mitigation measures.
But independent South Norfolk councillor Clayton Hudson said: "My concern is about openness and transparency, with this potential use of public money.
"And I'm not sure stopping a pig farmer from putting nutrients in the system only to replace that with more development solves the issue."
The news is also likely to be met with shock in the farming industry, with questions about what it could mean for the future of some sectors.
The matter will be discussed at a meeting of South Norfolk Council's planning committee on Wednesday (October 25).
READ MORE: Norfolk's white van trades 'on brink of bankruptcy'
The government had tried to scrap the nutrient neutrality requirements, with prime minister Rishi Sunak and local government secretary Michael Gove announcing their intent during a visit to Hethersett in the summer.
However, the government's bid was defeated in the House of Lords, with Labour and Liberal Democrat peers joined by three Tory peers in voting to block ministers' plans to rip up the rules.
The government is keen to revive its attempt to get rid of the rules, but is unlikely to be able to in this parliament.
South Norfolk Council leader John Fuller previously warned the restrictions were having a devastating impact on the local economy, with jobs in the construction industry being lost.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here