From the middle of next year the school roll will be capped at 450 children and an enrolment zone centred on North Dunedin and Leith Valley will likely be introduced.
This follows school roll growth of an extra 100 pupils since 2008, and an influx of pupils from throughout the city.
George St Normal School principal Rod Galloway said the proposed changes would ensure the school continued to operate well within its existing footprint.
Otago Primary Principals Association president Jenny Clarke said changes at George St reflected social forces shaping schools throughout the city.
George St has enrolled 161 children this year - the most recent on Friday - bringing the school's total roll to 454.
Mr Galloway said factors, including a "committed and capable staff and board of trustees", a "stimulating environment for ... learning" and a large number of "resources ... opportunities and enrichment programmes" had contributed to the school's growing popularity.
Ministry of Education group manager Karl Le Quesne, of Wellington, said the ministry asked the school to develop an enrolment scheme because the roll had almost reached capacity.
The proposed George St Normal School enrolment zone roughly covers Dalmore, Leith Valley, Glen Leith and Woodhaugh, as well as North Dunedin from Albany St to the botanic garden and from the green belt to Logan Park.
Of the children enrolled at the school this year, 80% come from outside the proposed zone area.
Children travelled from as far as Waikouaiti and Mosgiel to attend the school, Mr Galloway said.
The enrolment of out-of-zone pupils is governed by the provisions of the Education Act 1989.
If the number of applications for out-of-zone places exceeds the number of actual places available, a ballot will be held for new entrants each six months.
The order of priority for each ballot will be siblings of children already enrolled, then siblings of former students, children of staff members and everyone else.
Because so many pupils come from outside the proposed zone, Mr Galloway expects there will be "many places" for out-of-zone pupils.
Ministry of Education figures show nine state primary schools in Dunedin have enrolment zones.
The five largest primary schools - Silverstream, George St, Fairfield, St Clair and East Taieri - have rolls above 300.
The five smallest - Te Kura Kaupapa Maori O Otepoti, Purakanui, Taieri Beach, St Joseph's Port Chalmers and High Street - have rolls below 30.
Mrs Clarke, who is principal of Opoho School, said a growing birth rate meant school rolls were increasing overall, but social and political forces were determining which schools grew and which became smaller.
While neighbourhood shopping centres and churches had declined, schools had remained a strong centre of their communities, Mrs Clarke said.
At the same time, however, greater mobility, property development focused on markets other than families and people's desire for choice had affected pupil numbers in individual schools.
"Tomorrow's Schools encouraged parents to not necessarily only consider their local school," Mrs Clarke said.
"People like to have choice and they are in fact highly mobile."
