Greater Hume Council is considering borrowing $1.5 million to develop a 24-lot subdivision at Culcairn.
Council resolved in June to submit a planning proposal to the NSW planning department that would change zoning and lot sizes at four sites in the town.
A business case has been developed for one of four sites subject of the planning proposal, off Walbundrie Road, which will be put to a closed council session on Wednesday night.
General manager Steven Pinnuck said there was no available land in Culcairn, limiting the town's growth.
"We believe there is a need for additional residential land to be developed, unfortunately as a product of market forces, some of our northern towns are not attractive to developers," he said.
"If it is going to happen, it will probably fall back on council's shoulders to do.
"If we do manage to get the land rezoned, and we get the low-cost loan application up, we wold do more serious work on how that subdivision would look.
"The business case has been developed around sales of blocks of land meeting loan repayments."
The 10 hectare site off Walbundrie Road is farmland and zoned as such, requiring the NSW government to sign off on a rezoning.
It is among four sites re-evaluated through the the Culcairn Floodplain Risk Management Study and Plan, which were removed from zoning changes that occurred during the establishment of the Greater Hume Local Environmental Plan 2012.
A report by Habitat Planning for the council analysed the flood study, finding a 72 hectare site at Baird Street, a 5 hectare site at Balfour Street and 15 hectares off Railway Parade were suitable for rezoning.
"Land on the fringe of Culcairn now confirmed as 'flood free' or at minimal risk of flooding would remain in the RU1 Primary Production Zone and prevent the opportunity for the town to grow and benefit the community," the report states.
"The analysis undertaken in the flood study also confirms that flooding does not present as an unacceptable risk for site CU3 [Walbundrie Road].
IN OTHER NEWS:
"Only small portions at the northern and southern ends would be subject to inundation in a 1 per cent event and the hazard this presents is 'low'."
Since the completion of flood studies at Henty, Holbrook and Culcairn, council has made a number of attempts to rezone land near these townships, from RU1 Primary Production to either residential zonings or rural zonings.