The towns, to be built by 2016, will be Whitehill Borden in Hampshire, the China Clay Community at St Austell, Cornwall, Rackheath in Norfolk and north-west Bicester, in Oxfordshire.

Each site will be allocated a share of £60m to build "green" infrastructure including community-scale heat sources, possibly using combined heat and power plants, homes which achieve 70% carbon savings above current building regulations for heating, hot water and lighting and are fitted with smart meters and solar and wind generation.

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