A 230-lot subdivision in South Wangaratta has finally been approved by council after almost four years in planning.

The subdivision on the corner of Wangaratta-Whitfield Road and Clarkes Lane will be connected to an integrated wastewater treatment facility (IWTF) and will help address a chronic housing shortage in Wangaratta.

Wangaratta council's agenda noted 37 submissions, including from referral authorities, with 30 objecting towards the application.

The state planning panel recommended the application be approved after a public hearing in Wangaratta.

Permit conditions include an Environment Protection Authority (EPA) licence to develop the IWTF at Targoora Park prior to any residential lots being available for housing construction.

There was a procession of nearby residents to the proposal who posed questions to council at this week's meeting before councillors unanimously approved the rezoning and planning permit.

Cr Harry Bussell, who moved the motion to grant the permit, said the project has been many years in the making and numerous members of the community have participated in the discussion.

“I have always advocated for Wangaratta to grow around this area and I think if this goes ahead it will be very, very good for Wangaratta as a whole,” he said.

“I do acknowledge the objectors and I think the process has been respectful, and I urge my colleagues to vote for the proposal.”

Cr Harvey Benton said the project was first introduced in October 2021 and he noted the lengthy amount of time spent to discuss it.

“There has been ample time for people to put forward objections and have the answers come back,” Cr Benton said.

“We don’t get everything we want, we never do, but it’s gone to a panel which is virtually a VCAT decision.”

Cr Winters said when considering this item she had time to weigh up both sides of the discussion.

“At one point I've considered putting forward an alternative motion to defer the decision and uncertainty that would introduce for both council and the community made that a difficult path to pursue,” Cr Winters said.

“I want to take a moment to sincerely thank the community members for getting in contact with me with their questions and concerns over the past nearly year.

“And I generally appreciate the time, energy, and passion that they've brought into their advocacy.”

Cr Tania Maxwell noted her last minute discussions with the community on the morning of the decision.

“The big picture is that this will offer Wangaratta some enormous benefits and I think it's really important as time progresses that any issues that come from this planning permit once development starts, they're brought back to our attention,” she said.

She and Cr Benton noted issues with transport could be one of the future issues.

Cr Grant highlighted a lack of housing and also housing targets locally and the application will address some of the needs.

She noted that if they didn’t approve the development they would look back and say they should have.

“I know that there will be people who feel that it hasn't addressed their needs and we certainly acknowledge the objectors in this process,” Cr Grant said.

“We trust that they have found they've been listened to in a respectful way.

“Perhaps we haven't been able to address every concern, but this particular application meets the needs of the Wangaratta rural city planning scheme and I think it's something that needs to go forward.”

Council is now required to submit the amendment with the assistance of the Department of Planning to the Minister for Planning within 10 business days from the date of its adoption.