The corporation was established as part of an initiative by the future Deputy Prime Minister, Michael Heseltine, in February 1987 during the Second Thatcher ministry.

[1] Board members were directly appointed by the minister and overrode local authority planning controls to spend government money on infrastructure.

[2][3] Its flagship developments included the regeneration of the East Quayside in Newcastle, Royal Quays in North Tyneside and St Peter's in Sunderland.

[4] During its lifetime 10,700,000 square feet (990,000 m2) of non-housing development and 4,550 housing units were built.

Circa 1,287 acres (521 ha) of derelict land was reclaimed and 24 miles (39 km) of new road and footpaths put in place.