The major housing project, called Arcadia Estate, is designed to accommodate urban sprawl and will sit on the southern side of town near Bylong and Warwick roads.

Although Tamworth Regional Council (TRC) supported asking the Department of Planning Industry and Environment (DPIE) for a gateway determination on Tuesday night, not everyone agreed with the proposed changes.

Councillor Mark Rodda said the increase in available lots could warrant going back to the public for further consultation.

"This is an example of a retrospective changing of the goalposts that will deliver a financially handsome outcome for some," he said.

"It makes no mention of new schools or medical centres vital to supply the growth.

"Just because Blueprint [100] mentions high-density housing options doesn't mean it will deliver happy or contented residents."

The council report argues the current zoning and minimum lot sizes don't use the land effectively in what will be one of Tamworth's key future residential areas.

Cr Helen Tickle said her initial reaction to the lot sizes was that there would be a lot more rooftops out there, but reading the report further she felt it was a good idea to create more lots.

"There still will be a choice in lot sizes," she said.

"The challenge is to create a quality subdivision irrespective of the size of the lots."

Green space, a canopy of trees, water-sensitive design and transport links to the CBD will be important in the design, Cr Tickle said.

The council will request the Minister for Planning, Industry and Environment delegate the council authority to make the plan.

One of the new provisions will require a minimum of ten homes per hectare across the entire site, with a maximum of 2,350 lots.

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Cr Juanita Wilson said she saw good and bad in the proposal but didn't want to see rooftops on top of each other.

"Tamworth hasn't been good at urban design and urban design is so important," she said.

"It's good to know we are getting better but the cost delivery for TRC and the developer shouldn't prohibit good design."

A commercial centre included in the plans would house a supermarket, specialty retail, food and drink premises and medium density housing.

Cr Russell Webb said it's the first development where industry and staff have sat down and tried to develop something for the future.

"I think there's a lot of positivity in that," he said.

"The diverse range of lot sizes probably mirror what industry is saying they foresee they will need in the coming 10 to 15 years.

"We're trying to grow our city in a sensible way."

Cr Jim Maxwell and Cr Mark Rodda voted against the motion, but it was carried.

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