It will create opportunities for construction of up to 1100 new homes, shops, parks, walking tracks and possibly a primary school, Meander Valley mayor Wayne Johnston said.

The Meander Valley Council launched the plan in response to the demand for affordable housing in the state's North.

"This project demonstrates Meander Valley Council's commitment to future development and our desire to lead the way in supporting sustainable growth," he said.

Development of the area is already underway with the first 33 lot subdivision approved at the May council meeting.

RELATED STORIES:

The council is now focused on securing funds to build "critical" infrastructure to service the development.

The preliminary design and cost estimates have already been completed for the essential infrastructure required to service the development, making this an attractive investment for government and the private sector investment, Mr Johnston said.

A sewerage treatment plant is required to progress the development, which has been identified by the council as a priority project.

The council is seeking 50 per cent of the funding for the plant.

Mr Johnston said population in the area will double in the next 20-30 years.

"New residents will be attracted to the open space, livability and the easy commute to town centres. Council is excited to play such a strategic role in residential development," he said.