The £11.7m development at Ocean Drive East at the Western Harbour in Newhaven will be a mix of social rent and mid-market rent properties.
The site, developed by Port of Leith Housing Association, is due to take around two years.
The flats will range from one to four bedrooms, with 46 one-bedroom, 49 two-bedroom, nine three-bedroom and seven four-bedroom making the development suitable for families, single people and professional couples.
Councillor Paul Edie, housing leader for Edinburgh City Council, said: “This development will provide affordable homes and will be a major boost to the regeneration of the Waterfront area.
“More and more households find it difficult to get on the housing ladder, which is why the council and its partners are currently building over 1000 new affordable homes all over the city.”
The developers say the site will incorporate environmentally efficient features, with top-floor flats having solar water heating panels on the roof which will be linked to system boilers, reducing the water heating energy requirements for these properties.