A charity had wanted to turn the site into a park with wild swimming and community spaces.
London Councils want to build a home for vulnerable children - the first of its kind in the capital - on part of the Thames Water depot on Lea Bridge Road in Waltham Forest.London Councils said an initial consultation would be held on Thursday.
The service, for which there is a national shortage, does not exist in London and means children currently have to travel a significant distance away from the city. Ms Woodman told BBC London: "Local people have been working for a really long time on this project. We've been talking to the landowner, which is central government, and they've known we've been putting these plans together.
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