Caerphilly County Borough Council has formally backed a £1.2 billion deal to boost the economy of South East Wales.
The Cardiff Capital Region (CCR) City Deal will see £734 million invested in the South Wales Metro transport scheme and £495m on other projects.
A special meeting of council held on Tuesday, January 31, backed the project.
Leader of Caerphilly County Borough Council Keith Reynolds, said: “This ambitious project is a once-in-a-lifetime opportunity to demonstrate our ambition and vision to residents.
“It will signal an exciting new era for the region and it’s great to see ten local councils working together with a shared goal of bringing prosperity and opportunities to our communities.”
The deal, which brings together ten local authorities, is expected to deliver up to 25,000 new jobs and bring in an additional £4bn of private sector investment.
Each authority within the CCR must also approve a commitment by the ten authorities to borrow a combined total of £120m as part of the CCR City Deal Wider Investment Fund.
Once the local authorities have signed up, they will be locked into the scheme for five years.
A regional cabinet of councillors will be created in March to develop potential projects and formulate a business plan.
Councillor Andrew Morgan, chair of the CCR Shadow Regional Cabinet, and leader of Rhondda Cynon Taf County Borough Council, said: “This is an important part of the City Deal process.
“The ten authorities have worked extremely closely over the past 16 months to get the City Deal to this position, but support for the City Deal from those authorities’ members is critical if we are to collectively take this hugely exciting Deal forward.
“Together, the local authority partners can bring about an economic and social step-change in the Cardiff Capital Region, through improved transport, supporting innovation, an improved digital network, developing skills, supporting enterprise and business growth, and through housing development and regeneration.”
The ten local authorities in the scheme are Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen, Vale of Glamorgan.