A planning proposal that could open the door for four new large lot residential properties in Cowra is being considered by Cowra Shire Council, with councillors supporting the proposal progressing to the next stage of the State planning process.

The proposal concerns 8.094 hectares of land at 387 Canowindra Road, which is currently zoned RU1 Primary Production and has a minimum lot size of 100 hectares.

The landowners, Robert and Gay Hilton, are seeking to have the property rezoned to R5 Large Lot Residential and have the minimum lot size reduced to two hectares.

If the rezoning is ultimately approved, the owners could then lodge a separate development application for a community title subdivision that would create approximately four residential lots, providing further opportunities for large lot housing on the outskirts of Cowra.

However, Council's current consideration does not amount to approval of the subdivision or the future homes.

Instead, councillors are being asked to support the planning proposal progressing to the NSW Department of Planning, Housing and Infrastructure for a Gateway Determination.

The Gateway process will determine whether the proposal can proceed, whether further investigations or studies are required and whether the proposal should be placed on public exhibition.

For Cowra, the proposal comes as the community continues to face the need for additional housing and a greater range of residential options.

The site has already been identified in the Cowra Housing Strategy 2025 as suitable for future Large Lot Residential rezoning, while the Cowra Local Strategic Planning Statement also identifies the area as having potential for rural residential growth.

Deputy Mayor Cr Nikki Kiss said the proposal was consistent with the type of rural residential development Council had previously considered in other parts of the shire.

“What we've been asked to consider in this is whether we might in principle support an amendment to the LEP to rezone 387 Canowindra Road from RU1 Primary Production to R5 Large Lot Residential, and again amending the minimum lot size from 100 hectares down to a minimum of two hectares,” Cr Kiss said.

She noted the property was a little over eight hectares, despite the current RU1 zoning requiring a minimum lot size of 100 hectares.

“That property size is already well short of what is expected in the LEP for it to be 100 hectares, indicating that this subdivision occurred quite some time ago,” she said.

Cr Kiss also pointed to other properties across the shire that sit within agricultural zones despite being significantly smaller than the minimum lot size and no longer representing viable agricultural holdings.

“In short, this is only to say that we would be supportive of going to the Gateway Determination,” she said.

Cr Tony Horton stressed that Council was not approving a development application through the current decision.

“We're talking about a process to let this go through to a Gateway Determination.”

Cr Horton said the location of the property and its inclusion in Council's housing strategy supported allowing the proposal to undergo further investigation.

“It's just on the edge of town."

"There's some other developments that have happened around it, so it makes sense to me to go the next step further,” he said.

He also highlighted that members of the community would have an opportunity to provide feedback later in the planning process.

“For those people that might be watching that are wondering if they get to provide any feedback, whether it's going to community consultation, that would come later, pending what happens after this part of the process,” Cr Horton said.

Council officers consider the site's agricultural value to be limited, particularly given its size of just 8.094 hectares compared with the existing 100 hectare minimum lot size.

The planning documentation notes that one of the proposed residential lots is slightly below the two hectare minimum and that any variation to the development standard would need to be considered through the appropriate future planning process.

Cr Peter Wright raised questions about the proposed lot sizes and how they would relate to existing development in the area.

He noted that Council had also recently considered smaller residential lot sizes in other parts of Cowra.

The discussion highlighted that the current Gateway process would primarily address the zoning change, while any detailed subdivision design and future lot sizes would be considered separately.

Another factor supporting the proposal is the availability of existing infrastructure around the site.

The planning assessment states that the property has access to reticulated town water, electricity infrastructure and Canowindra Road.

The strategy identifies the Canowindra Road site as suitable for future Large Lot Residential rezoning and proposes a two hectare minimum lot size.

Council's planning assessment describes the site as being within a transition area between Cowra's established residential areas and surrounding rural land.

Council officers believe allowing the proposal to progress for further assessment could contribute to housing choice without requiring a major expansion of Cowra's existing urban footprint.

The next step is the NSW Government's Gateway process.

If Council supports the recommendation, the planning proposal will be forwarded to the NSW Department of Planning, Housing and Infrastructure.

The Department could allow the proposal to proceed to public exhibition, impose conditions, request further studies or consultation, require amendments or determine that the proposal should not proceed.

Potential consultation could involve Transport for NSW, the Department of Planning, the Department of Primary Industries and Council's water services section.

If a positive Gateway Determination is received, a minimum 28 day public exhibition period is expected, unless the Gateway determination specifies otherwise.

The proposal was originally submitted under the 2023 LEP making guidelines, with updated NSW Government guidelines introduced in July 2026.

Council has been advised that any discrepancies between the previous and current guidelines can be addressed through the Gateway process.

The anticipated planning process could take several months, including Gateway assessment, consideration of conditions, public exhibition, submissions and preparation of final documentation.

No new subdivision has been approved and no new houses can be built as a result of the current Council decision.

Instead, Council's support would simply allow the proposal to move forward for further State assessment and, if approved through the process, eventual community consultation.