Although the farms were not left derelict, they could not provide enough accommodation for forest workers in this sparsely-populated area. At first, with the initial small size of the forest, enough workers could be found locally. Later, workers were transported from Llanidloes. This was unsustainable, and in 1948, the Forestry Commission decided to build a village near Staylittle, to house forestry workers. They employed an eminent architect, T. Alwyn Lloyd of Cardiff, to produce plans for a village that would eventually comprise eighty houses, a village shop, school and hall. As a first development, twenty houses were built on the site, with eight more a few miles away: these provided accommodation for half the workers. Construction began in 1949, with the first houses being occupied in 1951. The water supplies for the village, known as Llwyn-y-gog (or Llwynygog), were provided by damming of a nearby stream.