The subdivision’s master plan, which is due to be put to councillors at the September 2 meeting, features 1600 lots ranging from 200 square metres to two hectares.

The compact lots came under fire during the public consultation period earlier this year, with existing south Orange residents claiming the lots were out of character in a rural subdivision.

However, state planning laws, which came into effect last week, have allowed minimum lot sizes in western Sydney’s growth areas to be reduced from 250 square metres to 225 square metres, and even 125 square metres in areas capable of supporting higher densities to encourage terrace-style developments.

Sustainable development committee chair and councillor Jeff Whitton said the planning decisions in Sydney endorsed the measures anticipated for Shiralee and future housing estates.

“I think it’s an endorsement of the quality planning staff at Orange City Council, that they have a vision for this city,” he said.

Cr Whitton said Orange was becoming increasing cosmopolitan as people moved from Sydney and smaller lots catered for more diverse needs and budgets.

“Especially young people want to live in a high-density environment. They don’t want a backyard to look after,” he said.

“It’s all about facilitating what the market wants. Shiralee is a mix of studios, high density and home-style living, it’s got all of that.”

Cr Whitton said, eventually, Orange’s boundaries would change, but the planning method meant the council could avoid urban sprawl in the meantime.

“This will allow us to utilise the land we already have without becoming landlocked,” he said.

danielle.cetinski@fairfaxmedia.com.au