Representatives from Ashford's Future, Kent County Council, Ashford Borough Council, VolkerFitzpatrick and Victoria Road Primary School were among the special guests invited to an event celebrating the start of works on Victoria Way.
Victoria Way is an important new street that will help improve the travel choices for people coming to and from the town centre and International Station.
The new road will be an attractive, tree-lined avenue extending from the existing Victoria Road opposite the train station, and continue through brownfield industrial land to join with the A28 near Great Chart.
Judith Armitt, managing director of Ashford's Future, the agency overseeing the town's development, said: "Today marks a momentous day in the town's development. This is the most significant project to start in Ashford since the works to the former ring road and the new Shared Space.
"Victoria Way is a new street for Ashford creating better access to the heart of the town and exciting new investment opportunities for up to 1,300 new homes and 1,100 new jobs, as well as new shops, restaurant and cafes by 2021."
It will form part of the Southern Expansion Quarter and will include a new public square with seating and public art displays, as well as new shops, restaurants, cafes and homes over time.
The project has secured £16.5m Community Infrastructure Funding from Communities and Local Government and the Department for Transport, with the Homes and Communities Agency having overall responsibility for its delivery.
Kent County Council awarded the contract to Volker Fitzpatrick in May and work began in June 2010. The scheme will be completed by spring 2011.
Kent County Council Deputy Cabinet Member for Highways David Brazier said: "Victoria Way is important for the regeneration of Ashford. It will help to unlock the southern half of the town and make traffic movement easier, as well as improving access to the heart of the town centre."
Alistair Thompson, director of VolkerFitzpatrick, said: "We are pleased to be working in Ashford again and playing a part in the continued expansion of the town centre. This is a really exciting project which will provide improved public access and facilities to residents of the town.
"In order to do this the VolkerFitzpatrick team will be working in close proximity to shops and residential areas so we will ensure that the local community is kept up to date with progress of the project and any potential disruption it may cause."