At Tuesday night's Orange City Council meeting, councillor Russell Turner said whatever development occurred to the west and northwest, attention was needed in the Glenroi and Bowen areas and affordable housing was one of the key issues.

"The state government doesn't seem to have any interest in redeveloping those blocks," he said.

He said there should be a program formed between the state government and the council to develop the empty lots.

"Even if that means demolishing the house and in some instances the house next door and putting up three basic units or something like that," he said.

"There's a lot of great people in that area and I believe the council's been letting them down for too long - we all hear about the undesirable element and the crime that is over there."

Councillors did not discuss the suggested land release area stretching between Burrendong Way and Cargo Road.

According to the study, the site's groundwater was vulnerable, like most of Orange, and generally did not contain sensitive biodiversity but some areas, mostly around the Shiralee subdivision, were considered strategic agricultural land.

Councillor Scott Munro asked whether developer incentives could be considered and development services director Mark Hodges said it would form part of the consultation.

"We're giving some options - we might consider different ways of doing [developer] contributions," he said.

Councillor Stephen Nugent said he was particularly concerned to know there were only 31 homes charging less than $300 a week in Orange.

"It's up to council really to work out how much of an intervention we want to make and how directly involved we want to get in providing social and affordable housing, but there is a real need," he said.

He said he was interested in the strip of Bathurst Road, which car yards were gradually vacating.

"There's the potential that could be developed into medium density housing perhaps - it's within walking distance of the CBD and other facilities," he said.

The draft strategy will be prepared by July.