The 145.5 hectare piece of land boasts a church, a cricket pavilion and a caravan park, and can accommodate 80 people.

Knight Frank agent John Blacklow said he expected the village to fetch between $11 million and $13 million.

Mr Blacklow said the village had received "overwhelming" interest from overseas, interstate and local buyers.

"I've been selling hotels and tourism properties for 33 years with Knight Frank and I've never had anything as unique as this," Mr Blacklow said.

"Not only is it a town, but it's a fully renovated town."

Tarraleah Village has an annual revenue of more than $1.8 million.

The former Hydro village is currently a hotel, hosting guests, conferences and weddings. 

Facilities include a clifftop spa, 15 art deco cottages with three or four bedrooms, a function centre and a restaurant with a beer garden. 

The village has undergone many changes since Ross Warren, of Devonport, grew up there.

Mr Warren lived at Tarraleah with his family from his birth in 1951 until 1968, when his father, a Hydro worker, transferred to Sheffield.

Mr Warren moved to Devonport in 1969 from Hobart.

He worked for Hydro for a couple of years before being conscripted into the National Service in 1971. 

Mr Warren holds fond memories of growing up at Tarraleah. 

"We didn't know any different at the time, so we just thought it was the best place in the world to grow up,” Mr Warren said. 

To entertain themselves, kids would go fishing, play in the bush or swim at the river. 

"There were different clubs, there were tennis courts there, later on there was a golf course, and the swimming pool, there was a diving pool," Mr Warren said.

Mr Warren has returned to Tarraleah many times since he left for good.

In 1988 he returned for the 50^th anniversary of the station opening and in 2014 for Hydro’s centenary. 

He said there was a stark contrast between the Tarraleah of the 1950s and its modern form.

"Everything's changed really, I lived in two different houses when I grew up there and both of those houses are still there,” Mr Warren said. 

“Talking to some other people who came back to those weekends, their houses are gone and it's gone back to bush and everything they can remember is gone now.

“When I grew up there there were hundreds of houses there."

Mr Warren said renovations and new paint jobs gave cottages a “terrific” look.