Clunes could be set to grow with a planning application lodged to subdivide a 29.31 hectare parcel of land on the outskirts of town into 106 lots for new homes.
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The low density residential allotments would range from 2000 square metres to 2856 square metres, according to documents lodged with Hepburn Shire Council.
The proposal includes internal roads within the development, street trees and nature strips with two local parks totalling almost 1.5 hectares in size proposed in the northeast and southeast corners of the site.
The estate would adjoin Clunes Primary School in its southwest corner.
"The site is located within a lightly populated rural-residential area of Clunes, with the nearby area zoned for Low Density Residential, Farming, Rural Living and Neighbourhood Residential," the planning documents state.
"Extensive land surrounding the property is located within the Farming Zone, with some land also identified as being environmentally significant.
"The site abuts Esmond Park, with Clunes Common Nature Conservation Reserve further to the north."
Documents show six stages of the development.
The proposal will be advertised until January 24.
Last year, Hepburn Shire identified that 300 new dwellings would will need to be built in Creswick and Clunes by 2041 which could be contained within the town boundaries by utilising vacant lots and subdivisions.
The central highlands regional growth plan, put together by the state government in 2014 identified Creswick as a town experiencing medium growth whereas Clunes is set for limited growth and sustainable change.
