Resource consent for the sections was granted to developer and builder Brodie Anderson in November last year.
Mr Anderson, who is the director and owner of B A Building Ltd, bought the site from the Mosgiel RSA last year for "just over $1million".
All of the lots would be about 250sqm and have a two-bedroom dwelling as well as a small garage.
They will be able to be accessed from either Church St or Dee St, on the other side. The site is opposite the Mosgiel RSA.
Cars will be able to get to the properties via a small driveway or "leg-in" servicing all of the houses.
"On-site manoeuvring will be accommodated", the Dunedin City Council resource consent application said.
Each lot would have its own area of outdoor amenity space.
Major earthworks have been required to prepare the development.
"This is because a significant portion of the site is elevated, given its former use as a bowling green," the consent said.
"As the ground is considered unsuitable for use as a sub-base, excavation to a depth of 0.5m is proposed, resulting in the removal of approximately 1000cum."
The developer proposed to bring in 1400cum of "clean fill" and end up with a floor level about half a metre off the ground.
The maximum residential density for the zone was one bedroom per 100sqm and the development complied with that, the consent said.