Approved unanimously by West Lothian Council, the plans include a new primary school, land for healthcare uses, play area and a village centre with retail and community space.
Of the homes, 700 will be designated as affordable.
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Persimmon is also investing in new infrastructure to accompany the homes, including a new Gavieside bridge and a network of walking and cycle paths.
"This unanimous approval marks a major milestone for Gavieside Farm and reflects the significant benefits the development will bring to West Lothian,” said Neil Martin, land director at Persimmon Homes East Scotland.
"We look forward to continuing to work closely with West Lothian Council and local stakeholders as we bring this new community to life."
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