The Wagga diocese will spend about $23 million laying out roads and services for Ettamogah Rise estate, its property director Peter Fitzpatrick said yesterday.

Stage 1 on Wagga Road is being laid out by contractor Gray Bruni in a $4 million project for 49 lots the Albury Council has already approved.

And, in a new move, the diocese has submitted plans to the council for 343 more homes sites, extending along Wagga Road to Central Reserve Road at Ettamogah.

Such an extension of the city on the former Hume Highway has been talked about for more than 20 years, firstly by the Albury-Wodonga Corporation, which then owned the land.

Windsor Avenue will run off Wagga Road and other London names such as Whitehall Street, Regent Street and Fenchurch Drive, have been adopted. Piccadilly will be used later.

Mr Fitzpatrick said the diocese was looking well ahead by applying for eight more stages to fill a market need.

“We want to have a constant supply of lifestyle lots available,” he said.

The 40 lots in stage 1 will be just over 1500 square metres, more than double the size of most Lavington or Thurgoona home sites.

A handful of sites on the slopes of One Tree Hill will be at least 4000 square metres, with striking views of the Victorian mountains.

Most stage 2 to 9 lots will also be about 1500 square metres — the minimum allowed under city planning controls — the largest will be 7200 square metres.

The church’s consultant, James Laycock, of Blueprint Planning, said the environmental impact on One Tree Hill would be insignificant.

Mr Laycock said the city would gain the sort of low-density housing the council favoured for the area in its development control plan, with large lots on the higher land.

The city’s water supply has been augmented to allow homes to receive a reticulated water supply to the usual 240-metre contour.

Plans for stages 2 to 9 are available for public comment until February 4.