The draft complex, with a central park area, has been proposed for the former Orange Base Hospital site next to the new DPIE building in Prince Street.

Orange mayor Cr Reg Kidd said he welcomed the proposal to create inner-city living in Orange.

"Both younger and older people are looking for inner-city living," he said.

"The Orange housing market is really good at providing family homes, brick veneer houses with three bedrooms and a backyard.

"What is lacking are other options like apartments and townhouses, which are the norm in cities across the country. We want to create more diverse options for people and this site so close to the CBD is perfect for these types of homes."

Architects have prepared a draft plan for the site as a guideline for the planning changes that would need to be made for apartment-style residential use.

Cr Kidd said that design had plenty of merit.

"I love the idea. I think it can be played with around the edges," he said.

Council's Planning and Development Committee Chair Russell Turner said the community had 28 days to provide feedback on the proposed planning change before the matter went to council for consideration.

"We're after community submissions on specific planning elements, such as the bulk and scale of apartment buildings a developer would construct on the site," he said.

The proposal is on public exhibition on the council's website until March 12.

A public forum will also be held in the council chamber on March 1 from 5.30pm.