Wailani will have 864- to 1,300- square-foot homes on 12,000- to 15,000-square-foot lots. Plans call for utilities, septic tanks and paved private roads.
Developer Jim Flagg said prices will range from $95,000 to $123,000.
The 260-acre subdivision was purchased by the Flagg family in the 1960s. But instead of developing the land for housing, the family tried ranching and later tomato farming.
They will become the nation's second-largest telecommunications company after AT&T Corp. It is the biggest phone-company makeover since the break-up of the old Bell System monopoly in 1984.
The merger comes less than two months after Congress revamped the nation's telecommunications law, and provides a harbinger of mega-combinations to come. It gives SBC and Pacific Telesis greater size and power to offer a broader range of communications services, something made possible by the law.
The two companies are among seven formed from the 1984 break-up of the old Bell System monopoly. Together, they serve the two largest states, California and Texas, and will have 30 million phone lines.
Combined, the companies provide health care services to 23 million people, or one in every 12 Americans.
The deal marks an aggressive push by Aetna, one of the country's largest insurance and financial services companies, into the fast-growing world of HMOs and managed health care.
U.S. Healthcare is one of the largest and most profitable operators of health maintenance organizations and other managed care networks, serving 13 Eastern states and Washington, D.C.