Heritage buildings at the Riverside Centre section of the Bloomfield Hospital site will be converted into housing under state government plans.
A development application to rezone the area, initially by dividing it into two lots, is on public exhibition at Orange City Council.
The historic buildings in the precinct include Tallowwood, the former nurses home, and Nymagee, the former administration building at the complex.
The DA has been lodged for Housing and Property, Department of Planning, Industry and Development.
It said the Bloomfield Hospital precinct was a state heritage listed site which included Orange Hospital, the mental health services facility next to the hospital referred to as Bloomfield South and the Riverside Centre referred to as Bloomfield North.
"Riverside Centre (Bloomfield North) most recently was used as an aging disability and home care facility (which closed in 2016)," it said.
"Historically, Riverside Centre (Bloomfield North) was used for patients that were expected to recover in a short period, and Bloomfield South was used for long-term patients."
Proposed uses for the site include general residential, environmental living, public and private recreation areas plus an environmental conservation zone.
The DA does not detail how the buildings would be re-purposed.
A statement of Heritage Significance as part of the report said heritage areas would not be harmed.
"The proposed subdivision will have little to no heritage impact upon the significance of the Bloomfield Hospital," it said.
The DA is on exhibition until November 12.
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