Everton chairman Bill Kenwright hailed a "momentous day" after the club formally broke ground on their new stadium at Bramley-Moore Dock.
The club took over the site on the banks of the Mersey at the end of July to begin preparatory works and now an official ceremony – involving an Everton-branded excavator – has taken place to mark the start of the three-year build proper.
"This is a momentous day. One that we have all been waiting for," said Kenwright.
"Now that the work has commenced we can all watch our magnificent home as it comes to life.
"In a few years' time we will, of course, be bidding the fondest farewell imaginable to our cherished home at Goodison Park.
"That sad day will be made easier because we know we are going to an astonishing new stadium that will bring our fans and their children – and their children's children – the kind of joy throughout the next century that we have all shared in Liverpool 4 (Goodison's postcode)."
The £500million 52,888-capacity stadium is expected to provide a £1.3billion boost to the local economy and create more than 15,000 jobs for local people.