A rural living strategy (RLS) which received unanimous support from councillors at their May meeting will see 215 hectares of farmland across nine townships rezoned to make way for hobby farm-style land blocks.

Land in Camperdown, Terang, Timboon, Port Campbell, Lismore, Cobden, Simpson, Noorat and Skipton has been rezoned.

The newly-ruled residential zones aim to provide 'direction for future long-term rural-residential growth and development opportunities in the within the shire', the document outlines.

Mayor Neil Trotter said the RLS used supply and demand forecasts to support population increase, economic growth and job creation.

"Research and analysis started in March last year has found population is forecast to grow by at least 2.5% and an estimated 702 new houses will be needed over the next 18 years," Cr Trotter said.

"Corangamite is a tree-change destination with demand for larger rural-residential lifestyle lots. The RLS will help council balance protecting our prime farmland and natural environment with strategic growth of our towns and flow-on effects for Shire services and facilities.

"This is part of council's ongoing agenda to attract population and investment to ensure economic sustainability and prosperity into the future, while maintaining the liveability that is so important to our communities."

Low-density zones have a minimum subdivision area of .4 hectares

The strategy will see minimum lot sizes reduced from eight hectares to two hectares.

A total of 16 submissions were received, 11 of which raised objections.

Some were concerned that the RLS may prejudice future growth opportunities in the rural towns.

The council said the concerns had been addressed in the final rubber-stamped document.

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