The seven-hectare site is on Shiralee Road and Lysterfield Road.

Two buildings and all trees on the site will be demolished to make way for the houses.

About one-third of the lots will be only 200-376 square metres in size with a further 50 per cent being 400-550 square metres.

The developers are the Sydney-based Universal Property Group.

A development application for the subdivision is on public exhibition at Orange City Council until Friday October 2.

The DA states the 'super lot' would be created by consolidating two existing properties.

Four roads, two lanes and three public open space areas will be created as part of the development.

"The majority of the lots proposed are "standard" and meet the specific objectives of the Shiralee Master Plan," it said.

Last week mayor Cr Reg Kidd told an Orange City Council meeting the takeup of residential lots at Shiralee had been slow.

"I wasn't a strong proponent of Shiralee," he said in a debate about allowing rezoning for a shopping centre at Bloomfield which could be used by residents from Shiralee.

"I remember the arguments in here that we had to have Shiralee. Everyone that worked at the hospital and and all those people Cadia wanted to live on the south side of Orange at Shiralee.

"That should be full now, there shouldn't be houses or blocks of land available out there anymore.

"It wasn't true, they built it but it is moving very, very, very slowly."

Council decided to defer the re-zoning and seek talks with the developer.

Meanwhile a separate DA is on display at Orange council for redeveloping the rear of the post office in Summer Street.

It is proposed to alter the dock area by installing an awning to provide protection from the weather.

The DA said the work would not affect the building's heritage status. It said the post office was opened in 1880. The DA is on display until Friday October 9.