Capital development proposals for the project have been approved following a meeting of Derry City and Strabane District Council's Planning Committee.
The plans include domes and an annex building, a glasshouse, sheds, vegetable gardens, service area, parking and access road for the urban farm.
The site of the project is on lands opposite Ebrington barracks and was previously used as a helicopter pad for the military and has recently been cleared of asphalt hardstanding, concrete bases, footings, redundant underground services and sundry items.
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Welcoming the next stage of development, Chair of Council's Planning Committee, Councillor John Boyle said: "The plans for the Acorn Farm project will be a significant addition to the strategic network of urban greenways throughout our city.
"The proposals will transform the derelict site formerly occupied by the Ministry of Defence into an £6.2m urban farm where people can learn how to grow their own plants and food.
"Acorn Farm will utilise the best possible growing techniques, technologies and sciences to produce food that is local, seasonal and readily available."
The site has been clear felled to make way for the development in line with previous planning approval.
