A development application is seeking to amend an Orange City Council-approval plan from 2019, which is itself is an amendment of a 2015 approval.

It would involve putting 206 house lots on the nearly 17-hectare site on farmland on Lysterfield Road.

That's four more than has currently been approved.

However the change would require 18 existing lots to be smaller than the 700 square metre minimum land size guidelines for some of the estate.

Other areas of the site allow for smaller blocks with minimum sizes of 400 square metres and even 200 square metres.

The DA said the smaller block sizes would be compatible with existing and planned housing and would help create more homes in the Shiralee area, south of Orange.

"The proposal contributes towards providing additional saleable housing in the locality," it said.

"With respect to the under-sized lots, a dwelling can be sited with regular proportions, or on the surrounding lots that are also zoned for the same residential purpose."

It said the minimum size requirement was restricting the variety of housing types allowed in the area.

"The resultant lot sizes are more responsive to the current market demand," it said.

"There is still a good mixture of lots between 400, 500 and 600 square metres to meet the market expectations in this estate."

The plans also require the reduction in width of the Hawke Lane road reserve. It said a potential drainage hazard in the area had been resolved.

It also states that the larger lots of the housing in the estate will mainly be on the southern sides of the roads.

"There is a sound logic to having north facing lots (on the south side of the street) larger/wider than south facing lots so that the houses on the south side of the street can achieve good solar access to their rear yards, which would otherwise be overshadowed by their own built form," it said.

"Notwithstanding this when the change in lot size and width from one side of the street to the other is a consideration of the public realm [it] can feel somewhat unbalanced. However, it is considered that this would be fairly minor."

"It is noted that this precedent occurs right throughout the Shiralee estate where there are different-sized and shaped lots located directly across streets."

The DA is on exhibition until Friday May 7.

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