Land that borders the Southern Outlet is set to have underground stormwater and sewerage infrastructure installed.
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The land at 77 Peel Street West would be developed to allow a 21-lot subdivision that was approved in 2011 to progress.
Stages one and two of the subdivision were completed in 2012, meaning the permit still remains valid.
The next three stages of the subdivision have not progressed because of the lack of infrastructure to connect public stormwater and sewerage systems.
A development application was lodged with the City of Launceston council, which said it is now proposed to provide a connection through the Peel Street West road reservation and the adjacent land at number 77, recently purchased by the developer.
The land at 77 Peel Street West has an area of more than 5700 squared metres, and has a covenant on it to restrict building development.
It is expected that the proposed infrastructure works would cost more than half a million dollars.
The development application is open for comment via the council until July 31.
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