Greater Shepparton City Council adopted the Toolamba Growth Plan 2020 at Tuesday night's ordinary meeting.
The plan would allow long-term growth in a low-density area (blocks greater than 4000m2) north of Cummins Rd, and short-term growth south of Wren Rd in a high-density area (800m2 to 2000m2).
Most of the future housing areas proposed allow for future growth west of the train tracks except for a small area of medium-term growth near the Toolamba Recreation Reserve.
Road upgrades would also take place along Bitcon Rd, Rutherford Rd, Wren St and Cummins Rd.
Mayor Seema Abdullah said one of the reasons for the endorsed growth plan was to prepare for stage three of the Shepparton Bypass. Stage one has not yet been built.
Cr Bruce Giovanetti said he urged residents to look at the documents to get a good understanding of what will happen.
“Some residents in Toolamba I'm sure would like to have the little village settlement remain as is,” he said.
“Others are more likely to approve greater development, which in turn would lead to sewerage coming into the town."
Cr Dennis Patterson said he understood both sides of the argument.
“I've had lots of conversations with residents from Toolamba — some wanted to retain the village feel and some wanted their town to expand so they can have sewerage and a bigger school and see the town grow,” he said.
Cr Patterson said he had previously looked at buying land in Toolamba but nothing was available at the time.
“If you want the opportunity to expand there has to be land there and this (growth plan) provides for an extra 30 years for several developments,” he said.
“I really do believe it will have that village feel. It's unique that it has a pub; there's a lot of little towns without a pub and [Toolamba] will also have highway access — whether it's an asset or not, but I think it will be.”
The Toolamba Growth Plan consultation report said council received 38 formal submissions and 18 informal submissions. A further six submissions were received by referral authorities.
Some submissions said block sizes should not be smaller than 2000m2, fearing the town would lose its small-town feeling.
The council report said submissions were considered in finalising the plan.
Council also accepted the Toolamba Streetscape and Housing Typologies 2020 document on Tuesday night.
Cr Abdullah said Toolamba was the first small town in the municipality to have a growth plan adopted.
She said there were plans to create growth plans for other small towns, but did not say which town would be next.