Disney Imagineers have been steadily been working on the massive expansion to the Magic Kingdom's Fantasyland for some time now, and if you're not sure of the progress made then check out this great time lapse of the work:
The Orlando Sentinel is now reporting that the first section of the expansion, the Storybook Circus area, could open as soon as early 2012. This section of Fantasyland will be home to the double Dumbo spinner rides, complete with a large interactive queue to help keep crowds busy.
The Disney Parks Blog had a live chat recently with Imagineer Chris Beatty, who is currently working on the Fantasyland expansion. Check out the archived chat here for some additional details about the new land.