CORANGAMITE Shire mayor Matt Makin said a plan made seven years ago to address a shortage of residential land around Timboon was a complete failure.
The council voted on Tuesday night to defer an application to rezone land at Curdies River Road in Timboon from farming zone to rural living zone and low density residential zone to make way for a subdivision.
The applicant offered two options for a subdivision with one made up of 31 allotments and the second option was for a total of 20 allotments.
Cr Matt Makin made reference to the amendment C13 in the Timboon and Port Campbell review in 2005 which was to address additional residential and lifestyle development opportunities in Timboon.
"The process completed seven years ago was a complete failure," he said. "Here is an application to get land on the market and yet they can't. Timboon is still crying out for residential land. There is none, zero, zilch."
Cr Makin said he wanted to see the shire's planning department work with the applicant. "If we're serious about increasing our population and sustainable small communities we need to do more at a pro-active level."
A report presented to council noted there were two subdivisions with planning permits close to Timboon that had not been acted on.
"If demand for this type of development was at such a level to justify this rezoning, it would be likely that the already approved developments would have been undertaken so as to be market ready," the report stated.
"The subject site forms part of a larger land holding that is currently used for agricultural purposes." Councillors Ruth Gstrein, Chris O'Connor and Geoff Smith said they wanted more time to consider their options and to complete a site visit.