Plans by Watford County Council will see Watford become a more “attractive” and “vibrant” town over the next 20 years.
Three reports which will lead the continuing transformation were agreed at the council’s cabinet on Monday (July 4).
One report aims to tackle detailed policies for assessing planning applications, along with allocating sites for future development.
The other reports focus on proposals to develop the area around Watford Junction Station and turn it into a mixed-use neighbourhood.
The same area could see the creation of a new station interchange with the new met line in development. A new pedestrian footbridge could also be added to cope with "increased numbers [of people] coming through the station".
There might also be a new back entrance to the station to relieve congestion on Station Road and improve access from the M1.
The area between Cassiobridge Station and Tolpits Lane will also be redeveloped, with plans of adding new homes, two new schools, new shops, and multi-storey car parking to create "an attractive gateway" into Watford.
The public will be consulted about the proposals over the summer.
Elected Mayor Dorothy Thornhill said: "We know that planning applications will be coming forward for Watford Junction and Ascot Road.
"We think it is essential to be proactive and create briefs to ensure that we get what is right for Watford’s residents and businesses and allow for public comments at a point in the process when they can make the most difference.
"For a long time there have been discussions about the need to improve Watford Junction and the surrounding area, which is a major gateway to our town. These ambitious plans are the only way to deal with ongoing problems with accessing the station and congestion.
"With the Met Line Extension well underway, it is absolutely essential we are prepared for increased numbers coming through the station. But it is also vital that we get this development right and that it enhances Watford."