It will include four attractions, a hotel, and restaurants, and is scheduled to open by March 2023.
At a groundbreaking ceremony on Tuesday, Oriental Land Chairman and CEO Toshio Kagami said he aims to make the resort the only one of its kind.
Walt Disney Company Chairman and CEO Robert Iger also attended the event and expressed support for the project.
A record of more than 32 million people visited the Tokyo Disney Resort in fiscal 2018. But it continues to face tough competition from Universal Studios Japan and others.