Mayor Ruth Gstrein said the council was well aware of the need to provide more residential land within the rural shire.

She said through the Positioning Timboon and Simpson plan the need had been identified to provide land for industrial use in Simpson but also "importantly rezoning land for residential use".

"What we're calling worker housing, we're really very aware that along the coast the costs of housing and rental availability is really tight," she said.

Cr Gstrein said with two major developments planned for the Great Ocean Road, including the 12 Apostles Hot Springs and Resort, the need for more residential housing was clear.

"If international tourists come back and those two projects get up where are the workers going to live," she said.

The plan noted a shortage of key worker housing across the region and in Corangamite shire was an opportunity for Simpson.

Cr Gstrein said they were looking at identifying land in Simpson that can be used for residential use, which would hopefully be cheaper land that could be purchased for rental accommodation for workers.

"This is what we're seeing in rural and regional Victoria now," she said.

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"People are coming out of the city and wanting to get into the regional areas and you're seeing the impact on the prices on properties... and the take up of vacant land.

"Corangamite is no different from most rural municipalities and I'm hearing this loud and clear through the Municipal Association that the demand for housing and residential land use is paramount."

Cr Gstrein said in Timboon there were a lot of opportunities to provide more residential land.

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"A number of privately owned parcels of land around Timboon whether they're in full development or small lots of residential land are being developed, which is terrific," she said.

"The council has bought land that the Timboon transfer station sits on and we're going to look at subdividing and developing that and making that available for residential land as well."

Cr Gstrein said the council was also lobbying the state government to make the process to rezone land for residential purpose more streamlined.

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