An investment group is preparing to seek a rezoning for a potential development of about 300 hectares in the NSW Southern Tablelands.
A site on East Tallagandra Road, immediately west of Sutton village, could have 250 new dwellings developed on it.
Urban planner Liz Densley from EIght Mile Planning has been contracted by the group to work on the site.
She said because of "how small the village is and the level of interest", the planning process had been "turned on its head" by involving the community early.
Ms Densley met with Sutton residents in August to discuss potential zoning changes. The land is currently rurally zoned and cannot be developed.
Rezoning is likely to be sought from Yass Valley Council for 5000sqm, single-dwelling blocks - a far larger size than the 1000sqm proposal also put to the community.
"We got some very strong and certain feedback," Ms Densley said.
A key concern was ensuring the community do not lose the opportunity for a bypass to be constructed.
"That is something that has been on the agenda for decades in Sutton," she said.
If rezoning is successful, formal community consultation will be undertaken before a development application is lodged with the council.
"Absolutely nothing is [set in stone] yet," Ms Hayes said.
The site is owned by an investment consortium named Tallagrandra Land Projects.
The developer of the Canberra brickworks, Doma, is understood to be a part the consortium but did not wish to comment.
A small portion of the site is considered to be high-value biodiversity, which would be excluded from development.
"We have already studied a biodiversity assessment to determine what vegetation types and critters live here," Ms Densley said.
The land was included in the Yass Valley Council's 2017 planning strategy as a potential location for new dwellings.
The area is within range for commuters to Canberra, positioned about 30 minutes north-east of the city.
A 66-lot subdivision adjacent to Sutton village went to market in 2022.
