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The construction of the second stage of the Huntlee development near Branxton will inject an estimated $421.9 million into the region's economy, an environmental impact statement for the project shows.
The document, which went on public exhibition on Tuesday, also notes that more than 2,350 direct and indirect jobs will be supported during the construction phase.
Developer LWP Property said the development would support the delivery of housing supply and improved affordability.
"The proposed 5,000 lots will deliver a significant provision of new housing supply to the local and regional area. These new homes will contribute to improved housing supply, affordability, choice and diversity available to existing and future residents," the environment impact statement says.
Once complete and fully occupied, the project could support about $246.5 million in additional retail expenditure each year, benefitting local businesses and stimulating economic activity overall.
LWP Property has already constructed a town centre and about 1200 houses, homing roughly 3000 people as part of Stage One.
The EIS notes the importance of social infrastructure, particularly schools, coming online in a timely way.
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A Community Infrastructure Needs Analysis has been undertaken to understand the social infrastructure and services required to service the future population.
"Recommendations identified in the analysis will be implemented to ensure timely delivery of social infrastructure and services based on community demand, and a Community Development Strategy will be prepared to outline a calendar of events and activations which will encourage new residents to meet each other and form new connections," the EIS says.
The Stage Two development will also include several upgrades to Hunter Water's regional potable water supply network to provide bulk potable water services.
This will require the construction of new drink water reservoirs, the construction of two new local water centres, and extension of trunk mains to supply water to the new villages.
"Land within the Stage Two Huntlee area has been set aside for these new Local Water Centres and associated infrastructure which will be owned and managed by Altogether Group. The provision of the two additional Local Water Centres will adequately service the wastewater requirements of the Stage Two development," the EIS says.
About 50 to 60 per cent of prospective buyers are from four local government areas; Cessnock, Singleton, Maitland and Lake Macquarie.
Roughly 30 to 40 per cent are from Sydney, particularly in the Western suburbs, with the balance from Central Coast and regional NSW.
The area being developed was the point of contention in a legal dispute with a Hunter-based rail group, who had several heritage trains stored on the land, worth millions of dollars.
In mid-2022, the train enthusiasts sought for up to three years to remove their property from the $1.5 billion development site. However the Supreme Court ruled in the developer's favour and the trains have since been relocated.