During the first half of the 20th century, Caldicot continued to grow steadily, but unspectacularly, reaching a population of 1,770 in 1951. Early in the 1950s, however, Chepstow Rural District Council decided that the village should be allowed to expand to approximately 3,000. Shortly after this decision, the government decided to build a new steelworks at Llanwern. Caldicot was designated as a suitable home for the thousands of steelworkers, and expansion plans were revised upwards. Llanwern steelworks opened in 1962, and by the end of the decade Caldicot had over 7,000 residents.