The land alongside the racecourse was rezoned from predominantly horse racing purposes to low density residential in 2013 to comply with the statewide planning scheme, but a lack of subsequent protection has caused concern in the community should housing be proposed.

In an attempt to protect the land around the racecourse, Northern Midlands passed a draft amendment to allow for uses like a vet centre and domestic animal boarding on the land.

But the Tasmanian Planning Commission - in a decision on August 11 - found it would not adequately protect the future viability of horse racing in Longford, and rejected it.

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"If it is the (council's) intent to safeguard the uses associated with the Tasmanian racing industry, strategic planning must be undertaken in liaison with TasRacing to ensure that no irreversible planning decisions are made that may impact on the existing equine uses," the Commission found.

"The Commission considers that the draft amendment fails to acknowledge the horse racing industry in Longford, which, on the evidence, is of social and economic benefit to Longford."

The council was preparing a "master plan" in partnership with TasRacing for the racecourse.

Before the Commission released its decision, a developer submitted plans with Northern Midlands for a 44-lot subdivision covering 6.25 hectares of the land, including a frontage on Anstey Street directly facing the racecourse.

Michael Morris, who runs the Longford Equine Clinic near the racecourse, objected the council's amendment in the Planning Commission, and has also made a submission against the subdivision.

He said having housing development alongside the racecourse would create conflict between residents and trainers, who are often required to park in surrounding streets to attend trials.

His submission raised fears for the overall future of the racecourse.

"A training centre can only survive when it has the necessary support structures in place and an essential part of that is the space available for training and spelling, as well as an understanding and sympathetic immediate local community," the submission reads.

"Those residences presently within the area are almost all involved in, and sympathetic to the racing industry.

"There can be no guarantee of that with this subdivision, which is a requirement of the current interim planning scheme."

Local residents involved in the racing industry prepared a petition to council calling on the council to return the land zoning to its previous state. They believed there was ample space for new housing to the south of Longford, rather than next to the racecourse.

Longford Local History Committee chair Neil Tubb said that if the subdivision was approved, it could pave the way for more of the land to be developed for housing.

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"Once this development goes ahead, there's then two blocks on Anstey Street left and they'll be developed too," he said.

"I've seen it with other race courses. As soon as they're housed-in, they're gone within 10 years."

Submissions on the subdivision are open until Friday.

Northern Midlands Council was contacted for comment.