The application for the Western Tiers Distillery includes developing a distillery, cellar door and cafe at 67 Meander Valley Road.

Meander Valley Council's senior strategic planner Jo Oliver said distilleries in other rural locations in the state had raised the profile of Tasmanian produce and tourism in the regional towns.

"The Westbury township does not currently have any boutique distillery establishments and as such, the proposed distillery and ancillary sales diversifies the current commercial product and will act as additional tourist drawcard," she said.

"Particularly, the location of these establishments outside of the larger metropolitan cities has acted as drivers for the dispersal of visitors across the state."

She said the distillery's substantial distances to the nearest dwellings was anticipated to reduce the site's noise levels to an acceptable level.

The distillery plans to operate Monday to Friday from 7am to 5pm and the cafe from 8am to 5pm seven days a week.

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It plans to modernise the building's appearance, provide outdoor seating for the cafe and build two decks for outdoor dining and entrance.

A traffic impact assessment determined there would be no adverse impact on Meander Valley Road, with 64 extra vehicle movements predicted per day.

The site was previously used for steel fabrication and fishing lure manufacturing and needs to be rezoned as an urban mixed-use zone by requesting a permit to include distilleries in the zone.

The council approved the zone's amendment request if a screening fence of at least 1.8 metres was added for the western desk and a disabled parking bay relocated.

The draft amendment and application are available for public comment until December 16, before it's finalised and sent to the Tasmanian Planning Commission for a decision on the permit.

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