Oxenhope Parish Council hopes to develop up to ten new allotments on land in the Worth Valley.
The site off Hebden Road will help meet the demand from at least 20 villagers for plots.
The council has been negotiating for about a decade to use the Yorkshire Water-owned site.
Council vice-chairman, Councillor Tony Maw, said both parties had agreed the land could be used, and solicitors were now going through the complex process of drawing up legal agreements.
He added: “The problem is the amount of water pipes that go under the land, which Yorkshire Water needs to access. There are also covenants on the land.”
Coun Maw said it was well worth the parish council pursuing the scheme despite the difficulties.
He added: “We have a waiting list of about 20 people who want allotments. They could be waiting years for a plot to become vacant.”
At its meeting last week, the parish council discussed what measures were needed.
Members asked for a sketch plan showing a proposed timber walkway, which will cross marshland at the site.