A Naseby Vision meeting earlier this year highlighted the need for further provision of residential property, and this week two areas of land were rezoned by the Central Otago District Council.
CODC planning and environment manager Louise van der Voort presented a report to the council's planning and environment committee, which approved her recommendations to free the land for residential development.
Land designated residential resource area was a 6.6ha strip along Carrowmore St, and a 2.7ha section fronting Cemetery Rd and Hollywood St.
Ms van der Voort's report said Naseby residents wanted to manage the further expansion of their village in an appropriate manner, in keeping with existing built development.
"A lack of available residential land may result in applications to subdivide rural land for residential purposes, resulting in either declined applications or potential ad hoc development," it said.
CODC statistics indicated subdivision of residential resource area land at Naseby had created 24 residential allotments since 1998 - 22 in the past five years.
Accordingly, the council granted building consents for 22 dwellings in Naseby during the past decade, 11 of which were granted between 2004 and 2008.
Such figures showed an increased demand for residential development of the village in recent years.
Naseby has a permanent population of about 125, and close to 2000 during the peak holiday season.
In order to alter plots from rural to residential zones, the committee approved corresponding changes to the council's operative district plan at an estimated cost of $30,000.
Any resulting appeals to the Environment Court would generate an additional cost, Ms van der Voort's report said.
The changes would be publicly notified in May, after which submissions could be lodged with the council for consideration before a final decision was made.