Goldthorn Hill Allotments, owned by Wolverhampton Council, will now be run by a group of volunteers after council chiefs handed it over.
The Goldthorn Hill Pumping Station Allotment Society will attempt to clear up the land which is next to a Victorian Grade II-listed pumping station – which they aim to get running.
Amanda Barrie, chairwoman of the allotment society, said fundraising was already underway to revamp the site which remained desolated for more than 20 years.
She said: "It is quite a small site and we estimate there may only be room for six to eight full size allotments, so we plan to offer half size plots so more people will be able to benefit from the site.
"We have also talked about a members’ shop for seeds etc and possibly a small tea room which would hope to be a community facility.
"We are really excited that the council has given us the go ahead to start work on this valuable local asset. We are looking forward to getting started and involving the wider local community in the project.
"Can I also thank our local councillors, Paul Birch and Jas Dehar, for their support and to the council for its patience."
The group has been given the responsibility for two years – with a potential to extend the lease for 25 years if the group achieve their goal.
They will not be charged any rent for the site and handing it over to the society will save taxpayers £5,000 a year in reduced fly tip removal and general upkeep costs.
Councillor Louise Miles, Wolverhampton Council’s cabinet member for resources, said: "I know the local community will welcome this site being brought back into a productive use.
"These determined volunteers came to us to say they had a vision and a plan for the site and they produced a business case to show us what they intended to do.
"I wish them every success in turning this site back into a green oasis."
The Goldthorn Hill Pumping Station Allotment Society has a Facebook group which anyone who is interested in getting involved with the project is encouraged to join.