London Mayor Boris Johnson in Eastleigh in southern England February 20, 2013. (Reuters/Toby Melville)

London's mayor Boris Johnson announced plans to build a floating village on the River Thames on Tuesday as in the British capital looks to regenerate derelict sites around its eastern waterways in the aftermath of last year's Olympic Games.

The plans, which were launched alongside an international competition to find a developer, will see 15 acres of water at the Royal Victoria Docks, east of London's Canary Wharf financial district, turned into a plot with floating homes, hotels, restaurants and bars.

"It has the potential to become one of the most sought after addresses in the capital while breathing new life back into London's waterways," Johnson said in a statement. The formal procurement process will begin this summer.

The Royal Victoria Docks is one of three docks in east London which the mayor pegged for regeneration as part of plans to meet a shortage of homes in the British capital.

The floating village will be linked to other parts of the capital by Crossrail and cable car, the statement said.

More than 200 hectares of contaminated and derelict land in London's east end was redeveloped to build stadiums and accommodation for the Olympic Games and parts of the area is being turned into residential neighborhoods and a park.