Councillors voted to allow the City of Ballarat to start a process that could allow the parcel of land adjoining 5 Inkerman Street to be put up for sale at market value.

Property fences have been standing at the address for decades enclosing land owned by council, an officer report said.

Contained in the agenda for the ordinary council meeting on Wednesday, the report read: "As a result of historical circumstances, the residential parcel has extended beyond the formal title boundary and occupied an area of some 158 square meters of the Inkerman Street Road Reservation."

There is no clear reason why the titles have never been changed, and no obvious explanation why the fencing was originally allowed.

One suggestion is previous owners were permitted to do so in exchange of giving the council access to the rear of the property.

However, a search through council records did not reveal anything, according to the council report.

The owners are seeking to include the area officially as part of the title for the house. There would need to be a formal notification and public process for the sale of the land.

"Council would need to have regard to any submissions received in respect to the matter to determine a formal position accordingly," the report read.

All councillors voted in favour of beginning the process except Cr Samantha McIntosh who excused herself from the chamber with a disclosure of interest, saying "an extended version of our family has an interest in this particular property."

Cr Grant Tillett described it as a "a legacy that's been hanging round for more than 50 years".

Have you signed up to The Courier's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in Ballarat.