The £5 million waterfront will be used as a showroom by developer Princess Yachts to dock its new range of 'super yachts' at Mill Bay Docks on one of the UK's most desirable stretches of coastline.
It is hoped the project will act as a magnet to the über-rich hoping to buy one of the multi-million pound boats.
The scheme has been developed to allow its client to build yachts much larger than it has done before, and will therefore require a new sea wall to prevent the tide causing too much damage to the craft.
A 'hi-tech' underwater hydraulic gate will also have to be installed in order to keep a minimum of 2m of water inside the dock at all times.
The local authority hopes the scheme will spark further development in the area.
The firm says it has created a 'beautiful wave-roofed construction', which it hopes will be completed in 2008, with work expected to start next June.
Director Adrian Mitchell said: 'I wanted it to be a good advert for high-quality design and for Plymouth.'