Council last week rejected the application as it does not conform with its new Local Planning Strategy, but agreed to look at including it in the strategy as a “development investigation area”.

Land owner Ivan Rutherford said he was satisfied with the council’s decision.

The application, presented on his behalf by Greg Rowe and Associates, sought the creation of 50 hobby farm sized blocks, ranging in size from one to 1.4 hectares.

Mr Rutherford said despite the initial rejection he felt the land could still be developed in the future.

“There is no animosity between us and the council,” he said.

“They have got what they want and we have got what we want. So what happens will be in total co-operation with the shire’s planning department.”

Mr Rutherford said he and the council have had several conversations and are working “extremely closely”.

Southern Districts Estate Agency principal Neil Martin said the plan was to use the land for small rural holdings.

“The supply of small rural holdings is low and demand has always been fairly high for them,” he said.

“If owners in areas council has identified as ‘development investigation areas’ decide they don’t want to do anything about it, that stops people outside of those areas from developing.

“That’s why Mr Rutherford was trying to get his property included in one of those areas,” he added.