A £14million award will mean a permanent base for Royal Marines at Bovington Camp.
Work will start on bedrooms for 120 military personnel and facilities to service armoured vehicles in February.
The Marines, from 3 Commando Brigade Royal Marine Armoured Support Group, are currently working at Bovington but travelling to living quarters in Yeovilton.
The multi-million-pound contract between the Defence Infrastructure Organisation (DIO) and industry partner Debut Services to complete the project will mean that military personnel can live on-site.
It will also allow troops from Bovington’s Armour Centre to rehearse complex manoeuvres using a range of armoured fighting vehicles. The facilities will be built on two plots which form an existing part of Bovington Camp.
County councillor for the area Alex Brenton said the plans would stimulate the local economy.
She said: “My first reaction is it is good because there is a commitment there to progress. I know there have been a few issues with other local residents not being overly happy with MOD plans in the past but I think we have come to a sort of compromise and as long as the plans are in line with this, I am all in favour.
“Anything that stimulates the economy in the area is a good thing.”
The Royal Marine Armoured Support Group is made up of 3 Commando Brigade’s experts in protected mobility and provides manoeuvre support to the Lead Commando Group.