The Department of Planning, Industry and Environment quietly released the draft Hunter Regional Plan 2041 this week to guide how land is used across the region over the next 20 years.

The document emphasises higher densities and infill development to accommodate population growth, including an infill benchmark of 80 per cent for all new housing in Newcastle.

The plan also recommends a new approach to existing and future housing development which reduces dependency on cars.

"For many decades, growth in the Hunter, and indeed across Australia, has been based on an assumption we would use our cars to meet most of our needs, often involving travelling long distances," the plan says.

"This assumption has been a self-fulfilling prophecy, since the way we've designed growth, both in land use, urban design and transport infrastructure, has made personal vehicle use the most attractive choice, and often the only realistic choice."

The plan says the idea of a 15-minute region represents a significant change in the way governments prepare for growth.

"The concept reimagines cities, towns, villages and communities across the Hunter not as divided and discrete zones for living, working, education, recreation and entertainment but as mixed neighbourhoods where people can generally access most typical everyday needs within a 15-minute walk or cycle."

The government's parliamentary secretary for the Hunter, Taylor Martin, said the massive Huntlee Estate at North Rothbury was one greenfield development which could benefit from the 15-minute principles.

"Huntlee's a perfect example because it's something that's still getting off the ground," he said.

"It can be worked into the future approvals for the Huntlee area.

"It's more about making sure when planning is done there are amenities close by."

Mr Martin said the "high-level, broad strokes plan" promoted mixed-use areas as work life changed.

"Historically, you had big, big industrial lands. Conversely, you had big, big suburban lands.

"We have areas now where no matter what you need you have to get in your car and drive to a big shopping centre.

"The nature of work has been changing for quite a while, and it's now possible to have more white-collar work where you can dovetail it in next to residential and retail."

He denied the new approach was an admission that past planning had failed.

"It's not so much there's been a failure. It's really now there's an opportunity, and COVID has shown us that.

"The nature of work has changed, and ergo our planning should now start to realise that and accommodate it."

The plan outlines strategies for achieving the mixed-use goal, including local planning and development controls which allow more variety of land uses in neighbourhoods.

It says development proposals should be prepared and assessed with 15-minute principles in mind.

"Schools and child care at scales and locations that serve local communities and encourage walking and cycling to school are strategically important," it says.

The draft plan, which is on public exhibition, also confirms the Hunter's potential as a hub for renewable energy and diversified industry.

Business Hunter CEO Bob Hawes said the plan incorporated the state's net-zero targets and attempted to increase the region's resilience to economic shocks.

"In particular we are interested to learn more about the foreshadowed 15-minute region and how this approach to urban and regional connectivity will recognise and cater to the significant characteristic differences of community and business across the region," Mr Hawes said.

Housing industry group Urban Design Institute of Australia said it was "cautiously optimistic" the plan would help infrastructure keep pace with demand for new housing.

"However, the new planning processes must be backed up with meaningful investments and better planning from government to deliver infrastructure like roads, power, water and sewer," it said in a statement.

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