The proposed land on Loughan Road is bordered on one side by a sealed residential network. On the other, sits a drainage ground.

Three lots currently exist on the land, with two already boasting dwellings.

The third and most northern lot is vacant, and it is this owner who has presented the proposal to council, calling for an amendment of minimum lot sizes.

If successful, the development will shift the minimum boundary from 4000 square metres to 1500 square metres.

Council's director of community and business, Grant Johnson, said it would not necessarily create a precedent for other large land sizes to undergo the same process, but that it may be something other "residents might look to do in the future".

"At the moment, the council is planning for new subdivisions, and it does make sense to go from the larger 4000 metres squared to 1000 metres squared, as a transition," he said.

The Loughan Road development will be designed to accommodate up to six additional allotments. Addressing councillors last Tuesday night, Mr Johnson indicated that a yield of four allotments would be "considered realistic".

Figures from the most recent population census indicate that Junee achieved a 1.4 per cent growth rate between 2011 and 2016.

An estimated additional 90 people take up residence in the town each year, leading to an annual demand for 35 new dwellings.

If the town is preparing for a population jump of between 1500 to 1800 new residents in the next two decades, councillors were told, new dwellings would soon be in short supply.

Additionally, the report stated an apparent shortage of housing, as indicated by the rapid sale of other recent town developments.

"A strong indicator of shortening supply is the "off-plan" sales of residential lots in the John Potts Drive precinct where 11 lots out of 18 have already been sold prior to registration," the report reads.

Councillors unanimously moved the proposal last Tuesday night.

The final decision on its merit will now be given to the NSW State of Planning and Environment before a report is made available for public submission.