Mr Farraway met with the housing minister last week and again on Tuesday.

An East Orange action group had held protests, written to and met with politicians, and letter boxed, and it appears as if their organisation and determination has succeeded in at least putting the project on hold.

Residents were informed by the Land and Housing Corporation (LAHC) in October that their properties faced demolition and that they would be relocated at an unknown time to an unknown destination to make way for smaller, higher density properties.

"I have had many constructive and what I would call positive discussions with the minister and her advisers on the proposed project and how it does not currently meet community expectations," said Mr Farraway.

"I am happy that the Land and Housing Corporation (LAHC) has acknowledged that they need to do further community consultation here in Orange - but I want assurance that the people who call East Orange home, and have done so for years, will not be forced to leave this community."

The NSW government will hold a community forum to discuss the future of social housing in East Orange in the first half of 2021.

Minister Pavey said she understood the "strong local concerns raised in recent weeks about the unique circumstances and heritage context of two sites identified for early planning assessment in East Orange".

"While we are consulting with the residents in and around the Spring and Summer Street precincts there won't be any action or activity on these two sites in the near future," Mrs Pavey said.

"We want to meet the needs of the community, to create a space that integrates with the local landscape, and ensure ... vulnerable people are looked after.

"We know the best way to achieve a good outcome is alongside the local community."

One of the organisers of the action group, Justine Dunn, said it was "awesome that we've got a response from minister Pavey" and that the news was "promising".

"It's a bit of comfort for those wondering what was happening in the lead up to Christmas," she said.

Mr Farraway said he took up the cause of the residents after reading stories in the Central Western Daily.

About 40 residents met with Mr Farraway on November 27 to express their anger, anxiety and fear over plans to demolish the houses and relocate tenants.

In a sometimes heated meeting under a scorching sky outside some of the affected properties, Mr Farraway conceded to residents that the government needed to "go back to the drawing board" on any Land and Housing Corporation plan that involved razing the houses and replacing them with smaller properties.

Orange City Council has no control over the development as the land is owned by the state government, however mayor Reg Kidd and deputy mayor Glenn Taylor have met with the LAHC and expressed concern over any proposed development changing the current mix of private and social housing renters and owners.

Mr Taylor has also attended protests in Spring Street.

Mr Farraway said the current mix of residents should be used as a blueprint for developments elsewhere.

The LAHC did not comment on the minister or Mr Farraway's statements.

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