The City of Canterbury Bankstown has endorsed a planning proposal, which will reset planning rules for an old three-hectare industrial area in Milton Street, Ashbury.

Mayor Khal Asfour said the decision followed a lengthy two-year period, where Council worked with the owners of the land and the local community to get the best outcome.

"We negotiated with the land owner and carried out extensive community consultation, which included a number of community meetings; an extended 12-week public exhibition period, so residents could have their say; and letters that were sent to all residents living in Ashbury," he said.

"The original proposal, lodged with Council in 2017, was for the construction of 10 residential buildings up to 12 storeys but that was unacceptable to both Council and residents.

"Over time and having received widespread community feedback, we’ve been able to cut the height in half to six storeys, and limit that maximum height to just two buildings, and reduce the overall density of the proposed development by 50 per cent.

"We have also been able to ensure there will be greater access to Wagener Oval, with the proposed construction of a new road off Milton Street, and easy movement between the proposed buildings which will tier down to just one and two storeys adjacent to existing homes surrounding the development site. In fact, the majority, if not all, existing residents will not be able to see the six-storey buildings from their homes."

Other key benefits of the adjusted proposal are:

• Improved pedestrian and cycle access to Wagner Oval from Milton Street;
• Remediating the site and removal of contaminants associated with past industrial uses;
• A variety of housing types and styles for residents;
• The removal of existing unsightly industrial buildings;
• Offering publicly accessible open spaces within the site; and
• A potential for the establishment of neighbourhood shops to better service the local area.