From Disney Parks Blog:
A quick update…Walt Disney Parks and Resorts has officially broken ground for what will be the largest expansion in the history of Magic Kingdom Theme Park – Fantasyland. Just look at the images from the 1/4 inch dimensional model… it’ll be remarkable when completed. There will be four Disney classic-inspired areas or neighborhoods to explore. And one of the most unique offerings in those neighborhoods will be new interactive Storybook adventures with your favorite Disney princesses.
I am really looking forward to this expansion. I think Dumbo deserves his own themed area. I think the whole are will be quite beautiful when it is finished in 2013.