The two organisations are now leading on the Baron's Quay redevelopment after mutually agreeing to end a development agreement with Wilson Bowden Developments, who were appointed by the former Vale Royal Borough Council in 2008.
The move will enable the Council and the Partnership to develop a new retail and leisure scheme on the 40-acre site.
Outline plans and artists' impressions are expected to go on display as part of an engagement exercise with the community this summer, with planning applications submitted by the end of the year.
Baron's Quay will act as a catalyst for other major investments crucial to the regeneration of Northwich.
Other schemes now expected to come forward include an £11m cultural and leisure centre and a multi-million pound redevelopment of the waterfront between the two town bridges.
Councillor Herbert Manley, Executive Member for Prosperity, said 'The people of Northwich have been incredibly patient in awaiting the much-heralded regeneration of their town, and I am delighted to see their patience finally being rewarded.'
'Moving forward with Baron's Quay not only signals the start of this exciting development, but also enables us to forge ahead with one of the most ambitious town regeneration projects in the region.'
The redevelopment of Baron's Quay will dramatically open up this neglected riverfront area, creating a vibrant quarter where people can shop, enjoy leisure activities, socialise and work.
Building on designs and consultation undertaken last year, strong links with Witton Street, Weaver Square the Market will be at the heart of its design to ensure the development complements the existing retail area by encouraging a natural flow of pedestrian traffic between the two.
Meanwhile, plans are progressing on major housing developments at Winnington and Wincham urban villages.
Graham commented 'This is very exciting news for Northwich. In the general election, one of the key issues I campaigned on was getting regeneration back on track, so I am thrilled at this development.'
'Like many other residents, I look forward to seeing the detailed plans later this year. It is absolutely vital that we get this development right.'